SOLUTION: Hi Iam haveing some trouble with my financial homework, would someone please help me. My question is : Johm borrows $150,000. The terms of the loan are 7.5% over the next 5 years.

Algebra ->  Customizable Word Problem Solvers  -> Finance -> SOLUTION: Hi Iam haveing some trouble with my financial homework, would someone please help me. My question is : Johm borrows $150,000. The terms of the loan are 7.5% over the next 5 years.      Log On

Ad: Over 600 Algebra Word Problems at edhelper.com


    

Question 195176: Hi Iam haveing some trouble with my financial homework, would someone please help me.
My question is : Johm borrows $150,000. The terms of the loan are 7.5% over the next 5 years. It it important to note that he makes annual rather than monthly payments. Construct a loan amortization schedule that shows the 5 payments of Johns loans.
Iwould like to thank you in advance for your help and useing your time to help me with this question.
Answer by solver91311(24713) About Me  (Show Source):
You can put this solution on YOUR website!

The payment (using the PMT function in Excel) is $37,074.71

You should be able to construct your own amortization table using that information:
Row 1 would be:
Beginning principal: 150,000
Interest accrued: 150,000 X .075
Principal + Interest: Add the first two amounts
Less the payment of $37,074.71 gives the starting principal for the next year
The payment minus the interest accrued is the amount applied to the principal, if you need that.


John