Answer:
Hello some parts of your question is missing below is the complete question
Your firm has taken out a $500000 loan with 9% APR (compounded monthly) for some commercial property. As is common in commercial real estate, the loan is a five-year loan based on a 15-year amortization. This means that your loan payments will be calculated as if you will take 15 years to pay off the loan, but you actually must do so in five years. To do this, you will make 59 equal payments based on the 15 -year amortization schedule and then make a final 60th payment to pay the remaining balance.
answer : A) $5071.33
B ) $405410.94
Step-by-step explanation:
A )calculate monthly payments
Loan amount = $500000
Rate = 9%
Monthly rate = ( 9% / 12 )= 0.75%
Time / period = (15years* 12 ) = 180 months
calculate the monthly payments =PMT (monthly rate ,period - rate) ( using excel )
= $5071.33
B) Calculate the final payment
PV for 59 payments + PV for 60th payment = loan amount
first we calculate the PV for 59 payments
monthly payments = $5071.33
period = 59 months
monthly rate = 0.75%
PV for 59 payments = PMT( monthly rate, period, - monthly payments ) (using excel )
= $241,064.16
Hence PV for The final payment = loan amount - PV for 59 payments
= 500000 - 241064.16 = $258,935.84
Finally Calculate the Final payment
PV = $258935.84
monthly rate = 0.75%
period = 60 months
Final payment ( future value ) =FV( monthly rate, period,, - PV ) ( using excel)
= $405410.94