Compute the annual payment-amortization schedule

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You have started a small business and need to buy equipment at a cost of $1,750,000. You have saved $300 000 as a down payment. You plan to borrow the balance from your aunt at a rate of 18%, to be repaid annually over a 5-year period. The first payment is to be made immediately

a) Using Excel, compute the annual payment

b) Using Excel, prepare the amortization schedule

c) If you elected to pay off the balance of the loan at the end of the third year, how much would you have to pay?

Reference no: EM132501001

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