Create an amortization table that breaks down the annual


Your bank is willing to finance an equipment purchase costing $800,000. The terms of the loan are that you will make a 20% down payment ($160,000) and the bank will lend you the remaining $640,000 at a rate of interest of prime + 3½%. Currently, prime rate of interest is 4.50%. The loan will be repaid over a five-year period in five equal installments due at the end of each of the next 5 years. Create an amortization table that breaks down the annual payment into interest and principal payments as well as showing the Balance of the loan each year.

Request for Solution File

Ask an Expert for Answer!!
Financial Management: Create an amortization table that breaks down the annual
Reference No:- TGS02803275

Expected delivery within 24 Hours