You have borrowed $70,000 to buy a speed boat. You plan to make monthly payments over a 15-year period. The bank has offered you a 9% interest rate, compounded monthly. Create an amortization schedule for the first two months of the loan
What will be an ideal response?
Answer: Using a financial calculator N=180, i=9/12, PV=70000, FV=0, PMT=-709.99
MO Beg PMT Int. Princ. End
1 $70,000 $709.99 $525 $184.99 $69,815.01
2 $69,815.01 $709.99 $523.61 $186.38 $69,628.63
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a. true b. false
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