Loan amortization disregarding taxes
Not what you're looking for?
Borrowed 100,000 from a bank
Repay in 5 equal annual EOY payments, including interest
Bank wants to earn 10% Rate of Return on loan
What would the payments be, disregarding taxes/default risk?
Purchase this Solution
Solution Summary
Neat and Complete Solution to the Loan problem. Amortization Schedule by year included to show how the payments are divided into the Principal component and the Interest component.
Solution Preview
This problem is a case of fully amortizing, constant payment mortgage. In this, a fixed annual payment is calculated on the original loan amount at a fixed interest rate for a given term. The payment includes interest and a part repayment ...
Purchase this Solution
Free BrainMass Quizzes
Understanding the Accounting Equation
These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.
SWOT
This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.
Introduction to Finance
This quiz test introductory finance topics.
Balance Sheet
The Fundamental Classified Balance Sheet. What to know to make it easy.
Lean your Process
This quiz will help you understand the basic concepts of Lean.