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

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