Case 4-1
Bill has a bicycle repair shop in his basement. He would like a larger workshop so he investigates taking out a loan to convert his garage to a workshop. He uses Excel to create an amortization schedule.
-Bill would like to borrow $50,000 and pay it off in 10 years. What components will he need to identify for a loan amortization schedule created on an Excel worksheet?
A) beginning and ending loan balance
B) year, rate, monthly interest
C) beginning and ending loan balance and the amount of payment that applies to the principal and interest per year
D) interest paid at the beginning and end of the year

Question

Quizplus · Accepted Answer

For a loan amortization schedule in Excel, Bill will need to identify the beginning and ending loan balance, as well as the amount of payment that applies to the principal and interest per year. He will also need to know the loan amount and the interest rate to calculate the monthly interest. The year is not necessary to identify as it can be calculated based on the payment schedule. Interest paid at the beginning and end of the year is not relevant for creating an amortization schedule.

Case 4-1 Bill Has a Bicycle Repair Shop in His Basement. He