Kay Kinder has borrowed $500,000 at a nominal annual rate with monthly compounding of 6.50% to start a new company. The first payment on the loan will be at the end of year 1.
Revenue of the new company is forecasted to be $50,000 in year 1 and be $100,0000 larger in each year thereafter. Required annual payments on the loan at the end of each year are to be 8% of the Revenue in that year.
In what year will the loan balance go to zero? Show excels formula/calculations.