Question

Casey received a loan of $29,000 at 6.5% compounded quarterly. He had to make payments at the end of every quarter for a period of 7 years to settle the loan.

a) Calculate the size of payments

b) . Fill in the partial amortization schedule for the loan, rounding your answers to two decimal places.

Answer 1

fc =PMT(C2,C3,-€4,-C5,C6) В D 1 2 RATE 3 NPER 4 PV 5 FV 6 TYPE Rate Per Period Total No.of Payments Present Value Future value Ending(0), Beginning(1) Payment per period (PMT(rate, nper,pv,-fv,type)) 0.01625 0.065/4 28 7*4 29000.00 0.00 7 PMT $1,297.40 PMT(0.065/4,28,-29000,0,0) 10 12 13 c=a*0.065/4 Interest d=b-c Pricipal Beginning Loan Balance 14 Year 15 16 17 18 280.000 $29,000.00 $28,173.85 $27,334.28 $26,481.07 $25,613.99 $24,732.82 $23,837.33 $22,927.29 $22,002.46 $21,062.61 $20,107.48 $19,136.83 $18,150.40 Payment $1,297.40 $1,297.40 $1,297.40 $1,297.40 $1,297.40 $1,297.40 $1,297.40 $1,297.40 $1,297.40 $1,297.40 $1,297.40 $1,297.40 $1,297.40 $471.25 $457.83 $444.18 $430.32 $416.23 $401.91 $387.36 $372.57 $357.54 $342.27 $326.75 $310.97 $294.94 $826.15 $839.57 $853.21 $867.08 $881.17 $895.49 $910.04 $924.83 $939.86 $955.13 $970.65 $986.42 $1,002,45 e=a-d Ending Loan Balance $28,173.85 $27,334.28 $26,481.07 $25,613.99 $24,732.82 $23,837.33 $22,927.29 $22,002.46 $21,062.61 $20,107.48 $19,136.83 $18,150.40 $17,147.95

07 fx =PMT(C2,C3,-€4,-C5,C6) B 16 17 $28,173.85 $27,334.28 $26,481.07 $25,613.99 $24,732.82 $23,837.33 $22,927.29 $22,002,46 $21,062.61 $20,107.48 $19,136.83 $18,150.40 $17,147.95 $16,129.21 $ 15,093.91 $14,041.79 $12,972.57 $11,885.98 $10,781.73 $9,659.54 $8,519.11 $7,360.15 $6,182.35 $4,985.42 $3,769.04 $2,532.89 $1,276.65 $1,297.40 $1,297.40 $1,297.40 $1,297.40 $1,297.40 $1,297.40 $1,297.40 $1,297.40 $1,297.40 $1,297.40 $1,297.40 $1,297.40 $1,297.40 $1,297.40 $1,297.40 $1,297.40 $1,297.40 $1,297.40 $1,297.40 $1,297.40 $1,297.40 $1,297.40 $1,297.40 $1,297.40 $1,297.40 $1,297.40 $1,297.40 $457.83 $444.18 $430.32 $416.23 $401.91 $387.36 $372.57 $357.54 $342.27 $326.75 $310.97 $294.94 $278.65 $262.10 $245.28 $228.18 $210.80 $193.15 $175.20 $156.97 $138.44 $119.60 $100.46 $81.01 $61.25 $41.16 $20.75 $839.57 $853.21 $867.08 $881.17 $895.49 $910.04 $924.83 $939.86 $955.13 $970.65 $986.42 $1,002.45 $1,018.74 $1,035.30 $1,052.12 $1,069.22 $1,086.59 $1,104.25 $1,122.19 $1,140.43 $1,158.96 $1,177.79 $1,196.93 $1,216.38 $1,236.15 $1,256.24 $1,276.65 $27,334.28 $26,481.07 $25,613.99 $24,732.82 $23,837.33 $22,927.29 $22,002,46 $21,062.61 $20,107.48 $19,136.83 $ 18,150.40 $17,147.95 $16,129.21 $15,093.91 $14,041.79 $12,972.57 $11,885.98 $10,781.73 $9,659.54 $8,519.11 $7,360.15 $6,182.35 $4,985.42 $3,769.04 $2,532.89 $1,276.65 ($0.00)