J&J; Cattle has purchased a quarter section of land for $160,(XX). They make a d

Question

J&J; Cattle has purchased a quarter section of land for $160,(XX). They make a down payment of $20,000, and the remainder of the purchase price ($140,000) is financed at 12 percent compounded quarterly with quarterly payments over 2 years. Develop an Excel table to illustrate the payment amounts and schedule for the loan, assuming payback follows Pay the.accumulated interest at the end of each interest period and repay the principal at the end of the loan period. Make-equal principal payments, plus interest on the unpaid balance at the end of the period. Make equal end-of-period payments. Make a single payment of principal and interest at the end of the loan period. A different plan: Pay off the principal per the table below. In addition, pay the accumulated interest at the end of each interest period.

Explanation / Answer

Hi,

Please find the answer as follows:

Part D:

Amount = 140000*(1+.12/4)^8 = 177347.81

Answer is 177347.81

Thanks.

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