Prepare a model to calculate and amortize a structured loan at a rate of 10 per cent. The cash flow is:
Six rentals of 1,000 on signing
Six further monthly rentals of 1,000
Sixty further rentals of X starting in the next month after the initial rentals
A final rental is payable on expiry of 20,000.00
The model will need to use the factors method to find the subsequent rental X and a cash flow with an IRR could check the final rental.