Illustrate the payment amounts and schedule for the loan

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Reference no: EM13188956

J&J Cattle has purchased a quarter section of land for $160,000. They make a down payment of $20,000, and the remainder of the purchase price ($140,000) is financed at 12 percent compounded quarterly with quarterly payments over 2 years. Develop an Excel table to illustrate the payment amounts and schedule for the loan, assuming payback as follows:

a.) Method 1: Pay the accumulated interest at the end of each interest period and repay the principal at the end of the load period.
b.) Method 2: Make equal principal payments, plus interest on the unpaid balance at the end of the period.
c.) Method 3: Make equal end-of-period payments.
d.) Method 4: Make a single payment of principal and interest at the end of the loan period.

Reference no: EM13188956

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