BUS522 Unit 2 Assignment Latest 2022 September

BUS522 Financial Tools for Managers

Unit 2 Assignment

Time Value of Money

Overview:

Suppose you bought a house and took out a mortgage for $50,000. The interest rate is 8%, and you must amortize the loan over 10 years with equal end-of-year payments.

For tax purposes, you must predict the yearly interest expense.

Instructions:

•             Create an amortization schedule in a table in Microsoft Excel.

•             Each row and column should be clearly labeled. Columns should include at a minimum:

o             Beginning Amount,

o             Payment Amount,

o             and Interest for each year.

•             Create a graph that shows how the payments are divided between interest and principal repayment over time.

Requirements:

•             Microsoft Excel file