Applying Time Value of Money Concepts
Fulton Corporation purchases new manufacturing facilities and assumes a 10 year mortgage of $2 million. The annual interest rate on the mortgage is 5.5% and payments are due at the end of each year.
a. Determine the mortgage payment that Fulton Corporation must make each year.
Round to the nearest dollar.
$
b. Use Excel to prepare a mortgage amortization schedule for the 10 years.
To access an Excel template, click the following link: mortgage amortization schedule
c. At the end of the first year, what amount will Fulton include as "current maturities of long-term debt" on its balance sheet?
Round to the nearest dollar.
$