Question

mut • 10 Formulas Data Review AA == 9.A. ESE Chapter+04+Problems+Student+UHFM+8th (3).xlsx View Tell me what you want to do... PWrap Text General Normal Merge & Center - $ % , .00 Conditional Format as Good Formatting Table Alignment Number Sty ont A G H I B C D E F UNDERSTANDING HEALTHCARE FINANCIAL MANAGEMENT Chapter 4 -- Time Value Analysis 5 PROBLEM 9 6 Epitome Healthcare has just borrowed $1,000,000 on a five-year, annual payment term loan at a 7 15 percent rate. The first payment is due one year from now. Construct the amortization schedule 8 for this loan. 10 ANSWER

Answer 1

Loan amount	$1,000,000
Loan term	5
Interest rate	15.00%
Loan payment	$298,315.55
Year	Beginning balance	Total payment	Interest paid	Principal paid	Ending balance
1	$1,000,000	$298,315.55	$150,000.00	$148,315.55	$851,684.45
2	$851,684.45	$298,315.55	$127,752.67	$170,562.89	$681,121.56
3	$681,121.56	$298,315.55	$102,168.23	$196,147.32	$484,974.24
4	$484,974.24	$298,315.55	$72,746.14	$225,569.42	$259,404.83
5	$259,404.83	$298,315.55	$38,910.72	$259,404.83	$0.00
Total		$1,491,577.76	$491,577.76	$1,000,000.00

Calculations