(Solution) Amortization Schedule Set up an amortization schedule for a \$34,000 loan to be repaid in equal installments at the end of each of the next 5 years. > Snapessays.com

(Solution) Amortization Schedule Set up an amortization schedule for a \$34,000 loan to be repaid in equal installments at the end of each of the next 5 years.

Please help me set this up in Excel.  I am having issues with part B and C.Amortzaton Schedule

Set up an amorTzaTon schedule for a \$34,000 loan to be repaid in equal installments at the end of each of the

next 5 years. ±he interest rate is 7%. Round your answers to the nearest cent. Enter "0" if required

Year

Payment

Repayment Interest

Repayment of Principal

Balance

1

\$

\$

\$

\$

2

\$

\$

\$

\$

3

\$

\$

\$

\$

4

\$

\$

\$

\$

5

\$

\$

\$

\$

±otal \$

\$

\$

A) How large must each annual payment be if the loan is for \$69,000? Assume that the interest rate remains at

7% and that the loan is paid oF over 5 years. Round your answer to the nearest cent.

\$

B)

How large must each payment be if the loan is for \$69,000, the interest rate is 7%, and the loan is paid oF in

equal installments at the end of each of the next 10 years? ±his loan is for the same amount as the loan in part b,

but the payments are spread out over twice as many periods. Round your answer to the nearest cent.

\$

C)

Why are these payments not half as large as the payments on the loan in part b?

I. Because the payments are spread out over a longer Tme period, less interest is paid on the loan, which lowers

the amount of each payment.

II. Because the payments are spread out over a shorter Tme period, more interest is paid on the loan, which lowers

the amount of each payment.

III. Because the payments are spread out over a longer Tme period, more interest must be paid on the loan, which

raises the amount of each payment.

IV. Because the payments are spread out over a longer Tme period, more principal must be paid on the loan, which

raises the amount of each payment.

V. Because the payments are spread out over a longer Tme period, less interest is paid on the loan, which raises the

amount of each payment.

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This question was answered on: Sep 21, 2023

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