contestada

Your firm has taken out a 521,000 loan with 8.6% APR (compounded monthly) for some commercial property. As is common in commercial real estate, the loan is a 5-year loan based on a 15-year amortization. This means that your loan payments will be calculated as if you will take 15 years to pay off the loan, but you actually must do so in 5 years. To do this, you will make 59 equal payments based on the 15-year amortization schedule and then make a final 60th payment to pay the remaining balance.
A. What will your monthly payments be?
B. What will your final payment be?

Respuesta :

jepessoa

Answer:

A. What will your monthly payments be?

  • $5,161.08

B. What will your final payment be?

  • $419,650

Explanation:

loan = $521,000

interest rate = 8.6% compounded monthly

loan schedule = 15 years

monthly payment = loan amount / PV annuity factor, 0.7167%, 180 periods* = $521,000 / 100.94786 = $5,161.08

No annuity table will give you the annuity factor for 0.7167%, so you must search for an annuity calculator on the web.

Then I prepared an amortization schedule to determine the balance after the 59th payment (attached file). The balance after the 59th payment is $416,649 + $3,001 in interests = $419,650.

ACCESS MORE
ACCESS MORE
ACCESS MORE
ACCESS MORE

Otras preguntas