A) Sigma Lte recently contracted a loan of $ 350,000 from a financial institution to...
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A) Sigma Lte recently contracted a loan of $ 350,000 from a financial institution to finance the acquisition of new equipment.
The conditions obtained by Sigma on this loan are as follows: A loan over a period of five (5) years; An interest rate of 8.5% capitalized quarterly; The reimbursement of interest only for the first two (2) years and the payment of constant amounts (including principal and interest) for the last three (3) years; All payments are made monthly for the 5 years of the loan.
i. You are asked to present the amortization table for this loan and to detail the amounts of principal and interest reimbursed during each period of the loan (therefore on a monthly basis). ii. What is the loan balance after 2 years? iii. What is the loan balance at the end of the fourth (4th) year? iv. What are the annual expenses ($) of interest that the Sigma company will have paid each year?
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