Mathematics
posted by Gibbons .
Construct a schedule for the amortization of:
(a) a debt of $15,000,000 with interest at 12% by 5 equal annual payments.
(b) a debt of $25,000,000 with interest at 12.5% compounded semiannually by making 6 equal semiannual payments.

a)
First we have to find the payment, assume it is made at the end of each year
15000000= pay( 1  1.12^5)/.12
pay = 4161145.98
Paym# interest principal Balance
1 1800000.00 2361145.98 12638854.02
2 1516662.48 2644483.45 9994370.52
3 1199324.46 2961821.52 7032549.01
4 843905.89 3317240.10 3715308.91
5 445837.07 3715308.91 0.00
not bad,
now do b) the same way
your payment equation will be
25000000 = pay( 1  1.0625^6)/.0625
Respond to this Question
Similar Questions

Finance
You are considering the purchase of an industrial warehouse. The purchase price is $1 million. You expect to hold the property for five years. You have decided to finance the acquisition with the $700,000 loan, 10 percent interest … 
Mathematics
Construct a schedule for the amortization of: (a) a debt of $15,000,000 with interest at 12% by 5 equal annual payments. (b) a debt of $25,000,000 with interest at 12.5% compounded semiannually by making 6 equal semiannual payments. 
Accounting
1. The price of a bond is equal to the sum of the interest payments and the face amount of the bonds. 1. True 2. False 2. When a corporation issues bonds, it executes a contract with the bondholders, known as a bond debenture. 1. True … 
calculus
3. A deposit of ___(i)___is made into an account paying an interest rate of 5% compounded annually. How many annual payments of ___(iii)___can be made from this account? 
math
A $15,000 debt is to be amortized in 12 equal semiannual payments at 5.5% interest per halfyear on the unpaid balance. Construct an amortization table to determine the unpaid balance after two payments have been made. Round values … 
Math
Stillwater hospital is borrowing $1,000,000 for its medical office building. The annual interest rate is 5 percent. What will be the equal annual payments on the loan if the length of the loan is four years and payments occurs at the … 
math
A $15,000 debt is to be amortized in 12 equal semiannual payments at an annual interest rate of 11% on the unpaid balance. Construct an amortization table to determine the unpaid balance after two payments have been made. 
Mathematics and investment
1. Angelo wants to renovate his house in 3 years. He estimates the cost 300,000. How much must Angelo invest now at 8% compounded quarterly in order to have 300,000 3 years from now. 2. Angelo Ancis want to save 500,000 in 5.5 years … 
college maths
A property worth $15,000.00 is purchased for 10% down and semiannual payments of $1750.00 for twelve years. What is the effective rate of interest if interest is compounded semiannually? 
Math
Construct the amortization schedule for a 15,000 debt that is to be amortized in 10 equal semiannual payments at 6% interest per halfyear on the unpaid balance