Applying time value of money concepts

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Reference no: EM131878417

Applying Time Value of Money Concepts

Fulton Corporation purchases new manufacturing facilities and assumes a 10 year mortgage of $2 million. The annual interest rate on the mortgage is 5.5% and payments are due at the end of each year.

a. Determine the mortgage payment that Fulton Corporation must make each year.

Round to the nearest dollar.

b. Use Excel to prepare a mortgage amortization schedule for the 10 years.

To access an Excel template, click the following link: mortgage amortization schedule

c. At the end of the first year, what amount will Fulton include as "current maturities of long-term debt" on its balance sheet?

Round to the nearest dollar.

Reference no: EM131878417

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