Question

please answer all questions

from now to purchase electric landscaping equipment. If the estimated cost is $250,000, how much should the college set aside each year if the funds earn 9% per year? Problem 3 Create an amortization table for a 3 year loan of $19,000 at 4.9% nominal interest compounded monthly. The table should include the date, remaining balance, pay period, interest payed during the payment period, principal payed in the payment period, and cumulative interest payed.

Answer 1

3)

The monthly payment on the loan is calculated as follows

Present value of the loan 1- (1 + interest rate) -nt interest rate

$19,000 PMT = 1-(1+0.049) 0.049 12

Monthly payment on the loan = $568.59

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The amortization table is shown below

Interest paid = Beginning balance x ( 0.049 $\div$ 12)

Principal paid = Monthly payment - Interest paid

Remaining balance = Beginning balance - Principal paid

Month	Beginning balance	Monthly payment	Interest paid	Principal paid	Cumulative interest paid	Remaining balance
1	$19,000	$568.59	$77.58	$491.01	$77.58	$18,508.99
2	$18,508.99	$568.59	$75.58	$493.01	$153.16	$18,015.98
3	$18,015.98	$568.59	$73.57	$495.02	$226.73	$17,520.96
4	$17,520.96	$568.59	$71.54	$497.05	$298.27	$17,023.91
5	$17,023.91	$568.59	$69.51	$499.08	$367.79	$16,524.84
6	$16,524.84	$568.59	$67.48	$501.11	$435.26	$16,023.72
7	$16,023.72	$568.59	$65.43	$503.16	$500.69	$15,520.56
8	$15,520.56	$568.59	$63.38	$505.21	$564.07	$15,015.35
9	$15,015.35	$568.59	$61.31	$507.28	$625.38	$14,508.07
10	$14,508.07	$568.59	$59.24	$509.35	$684.62	$13,998.72
11	$13,998.72	$568.59	$57.16	$511.43	$741.78	$13,487.29
12	$13,487.29	$568.59	$55.07	$513.52	$796.86	$12,973.78
13	$12,973.78	$568.59	$52.98	$515.61	$849.83	$12,458.16
14	$12,458.16	$568.59	$50.87	$517.72	$900.70	$11,940.44
15	$11,940.44	$568.59	$48.76	$519.83	$949.46	$11,420.61
16	$11,420.61	$568.59	$46.63	$521.96	$996.09	$10,898.65
17	$10,898.65	$568.59	$44.50	$524.09	$1,040.60	$10,374.57
18	$10,374.57	$568.59	$42.36	$526.23	$1,082.96	$9,848.34
19	$9,848.34	$568.59	$40.21	$528.38	$1,123.17	$9,319.96
20	$9,319.96	$568.59	$38.06	$530.53	$1,161.23	$8,789.43
21	$8,789.43	$568.59	$35.89	$532.70	$1,197.12	$8,256.73
22	$8,256.73	$568.59	$33.71	$534.88	$1,230.84	$7,721.86
23	$7,721.86	$568.59	$31.53	$537.06	$1,262.37	$7,184.80
24	$7,184.80	$568.59	$29.34	$539.25	$1,291.70	$6,645.54
25	$6,645.54	$568.59	$27.14	$541.45	$1,318.84	$6,104.09
26	$6,104.09	$568.59	$24.93	$543.66	$1,343.77	$5,560.43
27	$5,560.43	$568.59	$22.71	$545.88	$1,366.47	$5,014.54
28	$5,014.54	$568.59	$20.48	$548.11	$1,386.95	$4,466.43
29	$4,466.43	$568.59	$18.24	$550.35	$1,405.18	$3,916.07
30	$3,916.07	$568.59	$15.99	$552.60	$1,421.17	$3,363.47
31	$3,363.47	$568.59	$13.73	$554.86	$1,434.91	$2,808.62
32	$2,808.62	$568.59	$11.47	$557.12	$1,446.38	$2,251.50
33	$2,251.50	$568.59	$9.19	$559.40	$1,455.57	$1,692.10
34	$1,692.10	$568.59	$6.91	$561.68	$1,462.48	$1,130.42
35	$1,130.42	$568.59	$4.62	$563.97	$1,467.10	$566.45
36	$566.45	$568.59	$2.31	$566.28	$1,469.41	$0.00