Pool-N-Patio World needs to borrow $50,000 to increase its inventory for the upcoming summer season. The owner is confident that he will sell most, if not all, of the new inventory duringthe summer, so he wishes to borrow the money for only four months. His bank has offered him a simple interest amortized loan at 73% interest. (Round your answers to the nearest4cent.)(a) Find the size of the monthly bank payment.InterestPortionTotalPaymentBalanceDue(b) Prepare an amortization schedule for all four months of the loan.PrincipalPortionAAAPaymentNumber01234A$ALA+A$AAAAA$+A$+A

a)$15,012.12.Explanation:a)Convert the interest rate into a decimal:Interest rate = 7 ¾% = 31/4% =…

Answered: Pool-N-Patio World needs to borrow…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 15P

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Pool-N-Patio World needs to borrow $70,000 to increase its inventory for the upcoming summer season. The owner is confident that he will sell most, if not all, of the new inventory during the summer, so he wishes to borrow the money for only four months. His bank has offered him a simple interest amortized loan at 7 3/4 % interest. (Round your answers to the nearest cent.) (a) Find the size of the monthly bank payment.$ (b) Prepare an amortization schedule for all four months of the loan. PaymentNumber PrincipalPortion InterestPortion TotalPayment BalanceDue 0 $ 1 $ $ $ $ 2 $ $ $ $ 3 $ $ $ $ 4 $ $ $ $
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