Scribd Logo
Upload

Welcome to Scribd!

  • 8 views

    Test II - S

    Uploaded by

    iczech1506
    I. The document outlines an amortization schedule for a $10,000 loan over 2 years with payments every 4 months at an annual interest rate of 6%. It shows the opening balance, principal, interest, and payment amount for each period. II. This section outlines an amortization schedule for the same loan amount and term but with constant periodic payments of $1,785.26. It again shows the opening balance, principal, interest, and payment amount for each payment period. The document provides examples of amortization schedules for loans with equal principal payments and equal total payments to illustrate how interest is applied over the loan term. It also includes exercises on calculating interest rates and amounts using financial

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd

    Test II - S

    Uploaded by

    iczech1506
    8 views5 pages
    I. The document outlines an amortization schedule for a $10,000 loan over 2 years with payments every 4 months at an annual interest rate of 6%. It shows the opening balance, principal, interest, and payment amount for each period. II. This section outlines an amortization schedule for the same loan amount and term but with constant periodic payments of $1,785.26. It again shows the opening balance, principal, interest, and payment amount for each payment period. The document provides examples of amortization schedules for loans with equal principal payments and equal total payments to illustrate how interest is applied over the loan term. It also includes exercises on calculating interest rates and amounts using financial

    Original Description:

    Original Title

    Test II___S

    Copyright

    © © All Rights Reserved

    Available Formats

    XLSX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    I. The document outlines an amortization schedule for a $10,000 loan over 2 years with payments every 4 months at an annual interest rate of 6%. It shows the opening balance, principal, interest, and payment amount for each period. II. This section outlines an amortization schedule for the same loan amount and term but with constant periodic payments of $1,785.26. It again shows the opening balance, principal, interest, and payment amount for each payment period. The document provides examples of amortization schedules for loans with equal principal payments and equal total payments to illustrate how interest is applied over the loan term. It also includes exercises on calculating interest rates and amounts using financial

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    8 views5 pages

    Test II - S

    Uploaded by

    iczech1506
    I. The document outlines an amortization schedule for a $10,000 loan over 2 years with payments every 4 months at an annual interest rate of 6%. It shows the opening balance, principal, interest, and payment amount for each period. II. This section outlines an amortization schedule for the same loan amount and term but with constant periodic payments of $1,785.26. It again shows the opening balance, principal, interest, and payment amount for each payment period. The document provides examples of amortization schedules for loans with equal principal payments and equal total payments to illustrate how interest is applied over the loan term. It also includes exercises on calculating interest rates and amounts using financial

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 5

    Creating an amortization Schedule

    I. Principal = const.
    Additional calculated data
    Main data
    The amount of the loan 10,000 Periodic interest rate r' 0.02 (r' of the repayment period)
    Annual interest rate 6% Number of payments (n) 6.00
    Time of the loan 2 years Periodic Principal 1667 Credit/n
    Periodicity of payments every four months

    No of payment Opening Balance Principle Interest PMT (P) Ending Balance


    1 10000 1667 200.00 1,466.7 8333
    2 8333 1389 166.67 1,222.2 6944
    3 6944 1157 138.89 1,018.5 5787
    4 5787 965 115.74 848.8 4823
    5 4823 804 96.45 707.3 4019
    6 4019 670 80.38 589.4 3349

    33255
    II. PMT = const. Additional calculated data
    The amount of the loan 10,000 Periodic interest rate 2.0% (r of the repayment period)
    Annual interest rate 6% Number of payments 6
    Time of the loan 2 years Periodic PMT 1785.26
    Periodicity of payments every four months

    No of payment Opening Balance Principle Interest PMT (P) Ending Balance


    1 10000 1585.26 200 1785.26 8414.74
    2 8414.74 1616.96 168.2948 1785.26 6797.78
    3 6797.78 1649.30 135.9556 1785.26 5148.48
    4 5148.48 1682.29 102.9695 1785.26 3466.19
    5 3466.19 1715.93 69.32375 1785.26 1750.25
    6 1750.25 1750.25 35.00506 1785.26 0.00

    25577.44
    Exercises (the usage of financial functions)

    1. How long would it take you to save $10,000 if you invested $500 per quarterly period, and the int

    2. If 10 years ago you invested $1 000 and received an interest rate of 6% (compounded semi annua

    67.22 3612.22

    3. You borrowed $5 000 from a friend, who said you need to pay back $ 10 000 in 3 years, what rat
    Regular and equal payments
    FV
    PV

    erly period, and the interest rate is 10%?

    0.10
    10000.00
    500.00

    mpounded semi annualy ), how much would you now have?


    0.03
    1000.00
    20.00

    00 in 3 years, what rate are you being charged if it is compounded quarterly?

    n=4*3
    12.00
    Regular and unequal payments

    NPV

    You might also like