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Amortization

This document contains information about calculating loan payments, present and future values of cash flows, and annuities. It provides examples of calculating the annual payment to repay different loans, present and future values of mixed cash flow streams with varying interest rates and time periods, and present and future values of annuities due over a number of years. All calculations are shown with specific numerical values for loan amounts, interest rates, time periods, and resulting payment or present/future values.

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178 views

Amortization

This document contains information about calculating loan payments, present and future values of cash flows, and annuities. It provides examples of calculating the annual payment to repay different loans, present and future values of mixed cash flow streams with varying interest rates and time periods, and present and future values of annuities due over a number of years. All calculations are shown with specific numerical values for loan amounts, interest rates, time periods, and resulting payment or present/future values.

Uploaded by

profession
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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ANNUAL PAYMENT TO REPAY A LOAN

Loan Principal (present value) 6000 5600 30000000


Annual rate of interest 0.1 0.12 5%
Number of years 4 6 20
Annual payment US$1,892.82 US$1,362.06 US$2,407,277.62

US$48,145,552.31
Power Road Communications
40000000 1000000000 400000000
6% 5% 10%
30 40 25
US$2,905,956.46 US$58,278,161.17 US$44,067,228.88

US$105,251,346.50
LOAN AMORTIZATION SCHEDULE
Data: Loan Principal 6000
Annual rate of interest 0.1
Number of years 4
Year End Principal

Year Total To Interest Loan To principal


0 6000
1 US$1,892.82 600 1292.8248222 4707.17517776341
2 US$1,892.82 470.717517776342 1422.1073045 3285.06787330317
3 US$1,892.82 328.506787330317 1564.3180349 1720.7498383969
4 US$1,892.82 172.07498383969 1720.7498384 5.00222085975111E-12
PRESENT VALUE OF A MIXED
STREAM OF CASHFLOWS
Initial Outlay 1200 1300 10000 12000
interest rate 9% 8% 10% 15%
year end
year cashflow
1 400 400 5000 7000
2 800 800 6000 8000
3 500 500 7000 5000
4 400 400
5 300 300
Present Value US$1,904.76 US$1,951.34 US$14,763.34 US$15,423.69
NPV US$704.76 US$651.34 US$4,763.34 US$3,423.69
20000
FUTURE VALUE OF A MIXED STREAM
Interest rate per year 8%
Year end
year cashflow
1 11500
2 14000
3 12900
4 16000
5 18000
Future value US$83,608.15
PRESENT VALUE OF AN ANNUITY DUE
Annual payment 700
Annual rate of interest compounded annually 8%
Number of years 5
Present Value of an annuity due US$3,018.49
FUTURE VALUE OF AN ANNUITY DUE
Annual payment 1000
Annual rate of interest compounded annually 7%
Number of years 5
future Value of an annuity due US$6,153.29

84287.2538780496

400000
20%
10
US$95,409.10

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