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You have just taken a car loan of $15,000. The loan is for 48 months at an annual interest rate of 15% (which the bank translates to a monthly rate of 15%/12 = 1.25%). The 48 payments (to be made at the end of each of the next 48 months) are all equal.
a. Calculate the monthly payment on the loan.
b. In a loan table calculate, for each month: the principal remaining on the loan at the beginning of the month and the split of that month's payment between interest and repayment of principal.
c. Show that the principal at the beginning of each month is the present value of the remaining loan payments at the loan interest rate (use either NPV or the PV functions).
Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..
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