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
