Purchase Solution

Math of Finance Monthly Payments

Not what you're looking for?

Ask Custom Question

You find a small business loan in the amount of 50,000 is the amount you need to purchase the restaurant location. After researching banks to find the best interest rate, you find that the best interest rate of 9% intersest that compounds monthly for seven years.

1. What is the monthly payment for this loan? Show the formula used and the values used for each variable to calculate the monthly payment.

2. What is the unpaid balance of the loan at the end of the 1st year? Show the formula that was used and the values used for each variable to calculate the unpaid balance at the end of the first year.

3. What is the unpaid balance at the end of the 6th year? Show the formula that was used for each variable to calculate the unpaid balance at the end of the 6th year.

Purchase this Solution

Solution Summary

The math of monthly payments are examined. The unpaid balance at the end of the year is determined.

Solution Preview

This is a typical loan payment problem that can be solved with Microsoft Excel. The figures below were calculated using the attached Microsoft Excel spreadsheet. The spreadsheet was created to allow for any numbers to be entered.

1. What is the monthly payment for this loan? Show the formula used and the values used for each variable to calculate the monthly payment.
The monthly payment for the loan will be $804.45 over the course of 7 years (84 months). The Excel formula to ...

Purchase this Solution


Free BrainMass Quizzes
Paradigms and Frameworks of Management Research

This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.

Organizational Behavior (OB)

The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.

Lean your Process

This quiz will help you understand the basic concepts of Lean.

Transformational Leadership

This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.

Introduction to Finance

This quiz test introductory finance topics.