Answer:
attached loan-schedule
Explanation:
We determinate the quota of the loan:
[tex]PV \div \frac{1-(1+r)^{-time} }{rate} = C\\[/tex]
PV 1,000,000
time 5
rate 0.15
[tex]1000000 \div \frac{1-(1+0.15)^{-5} }{0.15} = C\\[/tex]
C $ 298,315.552
Now, we solve for the loan schedule:
interest: loan beginning balance x rate
principal amortization:
cuota less interest
ending principal:
beginning less principal amortization for the year
There is a rounding error of 3 cent but it is acceptable.
