Case B - You estimate that you will have $43,000 of school loans by the time you graduate. Your school loan is to be paid off over 10 years but you plan to pay it off over a 4 year period with payments being made at the END of each MONTH for the 4 years following graduation. Assume your school loans charge 6% interest compounded MONTHLY. Prepare a schedule to show (1) the month number (i.e. #1 - #48), (2) the beginning loan balance each month, (3) the payment each month, (4) the amount of interest in each monthly payment, (5) the amount of principal in each monthly payment, and (6) the ending balance each month. Format each of the amounts with two decimals. Please include totals at the bottom of your spreadsheet for (1) the amount of payments, (2) the amount of interest, and (3) the amount of principal which was paid during the 48 month term of the loan.
Case B - You estimate that you will have $43,000 of school loans by the time you graduate. Your school loan is to be paid off over 10 years but you plan to pay it off over a 4 year period with payments being made at the END of each MONTH for the 4 years following graduation. Assume your school loans charge 6% interest compounded MONTHLY. Prepare a schedule to show (1) the month number (i.e. #1 - #48), (2) the beginning loan balance each month, (3) the payment each month, (4) the amount of interest in each monthly payment, (5) the amount of principal in each monthly payment, and (6) the ending balance each month. Format each of the amounts with two decimals. Please include totals at the bottom of your spreadsheet for (1) the amount of payments, (2) the amount of interest, and (3) the amount of principal which was paid during the 48 month term of the loan.
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 44P
Related questions
Question
Done with Case A. Need help the rest.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps with 4 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Pfin (with Mindtap, 1 Term Printed Access Card) (…
Finance
ISBN:
9780357033609
Author:
Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Pfin (with Mindtap, 1 Term Printed Access Card) (…
Finance
ISBN:
9780357033609
Author:
Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning