Explore BrainMass

Explore BrainMass

    Time Value of Money: Loan Amortization Schedule

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Mary has decided to borrow $120,000. The terms of the loan are 6% over the next 4 years. She will be making annual payments (not monthly).

    Construct a loan amortization schedule that shows the 4 payments of Mary's loan.

    © BrainMass Inc. brainmass.com March 5, 2021, 12:41 am ad1c9bdddf

    Solution Preview

    Please refer attached file for complete solution.

    First we should calculate the amount of 4 annual end of year payments.
    Present value of loan=PV=$120,000
    Interest rate=i=6%
    Number of ...

    Solution Summary

    Solution describes the steps to estimate the annual payment amount in the given case. It also constructs a loan amortization schedule.