Question

The new truck your catering company just purchased has a cost of $75,000 with all the movable carts, storage, and refrigeration built in. You are able to negotiate a loan with your bank with 10% down payment, 12%, 2 years, with a monthly mortgage. Please find amortization schedule with correct numbers for the first two months of this loan.

Answer 1

Answer:

purchase price = $75,000

down payment = $7,500

assuming a fixed monthly payment

monthly payment = $67,500 / 21.243 (PVIFA, 1%, 24 periods) = $3,177.52

month     beg. balance   payment     interest   principal    end. balance

1                $67,500         $3,177.52   $675        $2,502.52  $64,997.48

2             $64,997.48      $3,177.52   $650       $2,527.52   $62,469.96