Jones just closed a $10,000 business loan that is to be repaid in three equal, annual, end-of-year payments.The interest rate on the loan is 13%. As part of his firm's detailed financial planning, Jones wishes to determine the annual interest deduction attributable to the loan.
a. determine the firm's annual loan payment
b. Prepare an amortization schedule for the loan
c. How much interest expense will Jones firm have in each of the next 3 years as a result of this loan?© BrainMass Inc. brainmass.com April 3, 2020, 6:04 pm ad1c9bdddf
For your convenience, I have attached a formatted MS Excel spreadsheet containing the information below. I have attached notes as well as cell address information, which you be of help to you in gaining a better understanding of the covered material. Feel free to contact me in the future in the event that additional assistance is required.
Jones just closed a $10,000 business loan that is to be repaid in three equal, annual, end-of-year payments.
The interest rate on the loan is 13%. As part of his firm's ...
This posting contains a formatted MS Excel file which illustrates how to prepare a loan amortization schedule.