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A loan of 100,000 is to be repaid in 4 level annual payments starting one year...

A loan of 100,000 is to be repaid in 4 level annual payments starting one year after the loan date. For the first 2 years, the annual interest rate is 8%; for the last 2 years, the annual interest rate is 4%. Find the annual payment and complete the loan amortization table.

t

Payment

Interest Due

Principal Repaid

Outstanding Balance

0

100,000

1

2

3

4
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Answer #1
Beginning Balance= 100000 PMT =PMT(8%,4,-10000) Interest part of PMT=8%*Beginning Principal Principal part of PMT= PMT-Interest Ending Balance= Beginning balance-Principal part of PMT
1 100000.00 30192.08 8000.00 22192.08 77807.92
2 77807.92 30192.08 6224.63 23967.45 53840.47
Beginning Balance= 53,840.47 New PMT=PMT(4%,2,-53840.47) Interest part of PMT=4%*Beginning Principal Principal part of PMT= PMT-Interest Ending Balance= Beginning balance-Principal part of PMT
3 53840.47 28546.01 2153.62 26392.39 27448.08
4 27448.08 28546.01 1097.92 27448.08 0.00
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