CREATE AN AMORTILIZATION SCHEDULE USING THE FOLLOWING INFORMATION
Present Value: 25,000
Interest: 3% compounded monthly
A. Create an amortilization schedule if the payment should be done every end of the month for 1 year
B. Create an amortilization schedule if the payment should be done every beginning of the month for 1 year
A. Create an amortilization schedule if the payment should be done every end of the month for 1 year
If payment is done at end of every month; the amount at the end of each month will be calculated using the formula;
Interest is calculated by using the formula;
For the first month;
=
The armotilization schedule will be as shown below;
B. Create an amortilization schedule if the payment should be done every beginning of the month for 1 year
If payment is done at beginning of every month; the amount at the end of each month will be calculated using the formula;
The principal at the beginning of the first month if payment is done at the start will be;
the amount at the end of each month will be calculated using the formula;
Interest is calculated by using the formula;
For the first month;
=
The armortilization schedule will be as shown below;
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