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    Years Beginning Balance Principal Payment Interest Payment Tax Saving Ending Balance Total Payment

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    Saba Khan
    This document shows the amortization schedule and tax savings for a 5 year loan with an original principal of $5,000,000. Each year, $1,000,000 is paid in principal and varying amounts are paid in interest and taxes are saved. Over the 5 years, a total of $1,850,000 is paid in installments and $6,096,000 is saved in taxes.

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    Years Beginning Balance Principal Payment Interest Payment Tax Saving Ending Balance Total Payment

    Uploaded by

    Saba Khan
    13 views2 pages
    This document shows the amortization schedule and tax savings for a 5 year loan with an original principal of $5,000,000. Each year, $1,000,000 is paid in principal and varying amounts are paid in interest and taxes are saved. Over the 5 years, a total of $1,850,000 is paid in installments and $6,096,000 is saved in taxes.

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    Original Title

    Amortization of Loan

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    This document shows the amortization schedule and tax savings for a 5 year loan with an original principal of $5,000,000. Each year, $1,000,000 is paid in principal and varying amounts are paid in interest and taxes are saved. Over the 5 years, a total of $1,850,000 is paid in installments and $6,096,000 is saved in taxes.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    13 views2 pages

    Years Beginning Balance Principal Payment Interest Payment Tax Saving Ending Balance Total Payment

    Uploaded by

    Saba Khan
    This document shows the amortization schedule and tax savings for a 5 year loan with an original principal of $5,000,000. Each year, $1,000,000 is paid in principal and varying amounts are paid in interest and taxes are saved. Over the 5 years, a total of $1,850,000 is paid in installments and $6,096,000 is saved in taxes.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    of 2

    Years

    1
    2
    3
    4
    5

    Beginning
    Balance
    5000000
    4000000
    3000000
    2000000
    1000000

    Principal Interest
    Tax
    Payment Payment Saving
    1000000 900000 1206000
    1000000 720000 1188000
    1000000 540000 1170000
    1000000 360000 1152000
    1000000 180000 1134000
    TOTAL INSTALLMENT COST

    Ending
    Balance
    4000000
    3000000
    2000000
    1000000
    0

    Total
    Payment
    694000
    532000
    370000
    208000
    46000
    1850000

    1st Year
    50800000
    12%
    Depreciation 1000000
    Markup
    900000
    48900000
    10%

    2nd Year
    50800000
    12%
    Depreciation 1000000
    Markup
    720000
    49080000
    10%

    3rd Year
    50800000
    12%
    Depreciation 1000000
    Markup
    540000
    49260000
    10%

    4th Year
    50800000
    12%
    Depreciation 1000000
    Markup
    360000
    49440000
    10%

    5th Year
    50800000
    12%
    Depreciation 1000000
    Markup
    180000
    49620000
    10%

    6096000

    4890000
    1206000

    6096000

    4908000
    1188000

    6096000

    4926000
    1170000

    6096000

    4944000
    1152000

    6096000

    4962000
    1134000

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