# 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 semi-annually by making 6 equal semi-annual payments.

1. Reiny

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

now do b) the same way

25000000 = pay( 1 - 1.0625^-6)/.0625

## Similar Questions

1. ### 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 …
2. ### 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 semi-annually by making 6 equal semi-annual payments.
3. ### 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 …
4. ### 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?
5. ### math

A \$15,000 debt is to be amortized in 12 equal semiannual payments at 5.5% interest per half-year on the unpaid balance. Construct an amortization table to determine the unpaid balance after two payments have been made. Round values …
6. ### 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 …
7. ### 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.
8. ### 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 …
9. ### college maths

A property worth \$15,000.00 is purchased for 10% down and semi-annual payments of \$1750.00 for twelve years. What is the effective rate of interest if interest is compounded semi-annually?
10. ### Math

Construct the amortization schedule for a 15,000 debt that is to be amortized in 10 equal semiannual payments at 6% interest per half-year on the unpaid balance

More Similar Questions