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  • Homework 22

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    Amine Dahbi
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    The document compares 4 different payment plans for repaying a loan of MAD4000 at 6% interest over 5 years. Plan 1 involves paying it all at the end, Plan 2 is annual interest payments plus end principal, Plan 3 is annual payments of interest and principal portions, and Plan 4 calculates the interest amount as the payment principal each year. Tables show the interest and total owed under each plan at the end of each year.

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    The document compares 4 different payment plans for repaying a loan of MAD4000 at 6% interest over 5 years. Plan 1 involves paying it all at the end, Plan 2 is annual interest payments plus end principal, Plan 3 is annual payments of interest and principal portions, and Plan 4 calculates the interest amount as the payment principal each year. Tables show the interest and total owed under each plan at the end of each year.

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    1 views19 pages

    Homework 22

    Uploaded by

    Amine Dahbi
    The document compares 4 different payment plans for repaying a loan of MAD4000 at 6% interest over 5 years. Plan 1 involves paying it all at the end, Plan 2 is annual interest payments plus end principal, Plan 3 is annual payments of interest and principal portions, and Plan 4 calculates the interest amount as the payment principal each year. Tables show the interest and total owed under each plan at the end of each year.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    of 19

    Plan 1: Pay all at the end

    Plan 2 : Annual Interest Payment + End principal


    Plan 3: Payment interest and Annual principal portion

    Plan 4: Interest Amount = Payment Principal


    Year interest owed for year
    0
    1 MAD240
    2 MAD254
    3 MAD270
    4 MAD286
    5 MAD303

    Year interest owed for year


    0
    1 MAD240.00
    2 MAD240.00
    3 MAD240.00
    4 MAD240.00
    5 MAD240.00
    5 MAD240.00

    Year interest owed for year


    0
    1 MAD240.00
    2 MAD192.00
    3 MAD144.00
    4 MAD96.00
    5 MAD48.00

    Year interest owed for year

    1 MAD240.00

    2 MAD197.42
    3 MAD152.30
    4 MAD104.46
    5 MAD53.75
    P=
    i% =
    n=
    t=

    interest owed by the end of the year (excel)

    MAD4,240
    MAD4,494
    MAD4,764
    MAD5,050
    MAD5,353

    Total =

    interest owed by the end of the year (excel)

    MAD4,240.00
    MAD4,240.00
    MAD4,240.00
    MAD4,240.00
    MAD4,240.00
    MAD4,240.00

    Total=

    interest owed by the end of the year (excel)

    MAD4,240.00
    MAD3,392.00
    MAD2,544.00
    MAD1,696.00
    MAD848.00

    Total=

    interest owed by the end of the year (excel)

    MAD4,240.00

    MAD3,487.84
    MAD2,690.55
    MAD1,845.42
    MAD949.59

    Total=
    4000
    6%
    5
    year

    interest owed by the end of the year F/P

    4240.00
    4494.40
    4764.00
    5050.00
    5352.80

    5352.90

    interest owed by the end of the year F/P

    4240.00
    4240.00
    4240.00
    4240.00
    4240.00
    4240.00

    5200.00

    interest owed by the end of the year F/P

    4240.00
    3392.00
    2544.00
    1696.00
    848.00

    4720.00

    interest owed by the end of the year F/P

    4240.00

    3487.84
    2690.55
    1845.42
    949.59

    4747.93
    Payment in the end of the year
    4000
    0
    0
    0
    0
    MAD5,353

    Payment in the end of the year


    4000
    MAD240.00
    MAD240.00
    MAD240.00
    MAD240.00
    MAD4,240.00
    MAD4,240.00

    Payment in the end of the year

    MAD1,040.00
    MAD992.00
    MAD944.00
    MAD896.00
    MAD848.00

    interest owed by the end of the year A/P

    949.60

    949.60
    949.60
    949.60
    949.60
    total owed after payment

    4000
    MAD4,240
    MAD4,494.40
    MAD4,764.06
    MAD5,049.91
    MAD0.00

    total owed after payment

    4000
    MAD4,000
    4000
    4000
    4000
    0
    0

    Total owed after payment


    4000
    MAD3,200.00
    MAD2,400.00
    1600.00
    800.00
    0.00

    End of year Payment(excel)

    MAD949.59

    MAD949.59
    MAD949.59
    MAD949.59
    MAD949.59
    Total owed after Payment

    4000

    MAD3,290.41

    MAD2,538.25
    1740.96
    895.84
    0.00

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