After winning $500,000 in the lottery in 2012, you decided to pursue your dream

Question

After winning $500,000 in the lottery in 2012, you decided to pursue your dream of opening a fitness studio, catering to a clientele interested in personal attention and a holistic approach to health and wellness. Now in your third year of operations, you have attracted a loyal membership and have reached capacity at your 2,000 square foot facility, with 510 members. Your initial operations were financed as follows: Prepare an Amortization schedule for the Bank Loan (Notes Payable Local Bank) Calculate the annual simple interest on the loan from parents (Notes Payable - M&D;) and the total interest paid at maturity - simple interest means Principal multiplied by Annual Interest Rate

Explanation / Answer

1) Amortization Schedule Date Principal Due Interest Total Due Installment Paid Principal Balance 01-01-2013 $50,000.00 $2,750.00 $52,750.00 $11,708.82 $41,041.18 01-01-2014 $41,041.18 $2,257.26 $43,298.44 $11,708.82 $31,589.62 01-01-2015 $31,589.62 $1,737.43 $33,327.05 $11,708.82 $21,618.23 01-01-2016 $21,618.23 $1,189.00 $22,807.24 $11,708.82 $11,098.42 01-01-2017 $11,098.42 $610.41 $11,708.83 $11,708.82 $0.01 2) Calculate the annual siple interest on loan from Parents Loan Amount $2,50,000 Rate of Interest 2% Annual Interest $5,000 Period of loan 3 years Total Interest Payable on Maturity $15,000

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