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PORTFOLIO:
Apply your understanding about the present value and future value of annuities and prepare TWO Loan EMI (EMI = Equated Monthly Installments) payment schedules based on the following instructions,
1. Loan Summary and schedule of Short term loan
2. Loan Summary and schedule of Long term loan
Guidelines:
1. Suggested Short term Loan period is 1 year to 3 years
2. Suggested Long term Loan period is 7 years and above
3. Each loan summary should not be more than 150 words (Total max. words 300)a. What type of loan is chosen?b. Why it is chosen?c. Interest rate, number of years (loan period) and loan amount to be assumed and clearly statedd. Starting date and ending date of the loan period is to be mentioned
4. The payment schedule should cover the following,a. Serial No.b. Date (period)c. EMI amount (EMI = Equated Monthly Installments)d. Principal component of the EMIe. Interest component of the EMIf. Interest paid - to dateg. Principal paid - to dateh. Principal balance
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