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Excel Lab Case 1 Gizmo Gizmo, a small manufacturing company whose ma

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Excel Lab Case 1: Gizmo Gizmo, a small manufacturing
company whose management wishes to reduce overhead
by installing a new, energy efficient heating system. The
new system costs $100K. due to the company\'s
insufficient cash reserves, the management has decided
that borrowing money is the only way to finance the
desired improvement A problem arises when Gizmo\'s
accountant points out that a standard direct reduction loan
would severely strain the firm\'s cash flow during the
heating season. In order to overcome this difficulty, the
accountant suggests a periodic linear gradient series
repayment scheme (G-$75) in a skip payment loan @ 12%
APR compounded monthly Month January-August
September-April May-September October-March April-
October November-February March-December Repayment
Yes Skip Yes Skip Yes Skip Yes 1. Develop a worksheet
repayment schedule for 4 years 2. Select the BB case
question link to enter the following information a. Initial
payment, Month #1 (first Jan payment) b. Last payment,
Month #48 C. Interest charged during Month #48 d. % of
PMT applied towards paying down the principal in Month
#1 e, 96 of PMT applied towards paying down the principal
in Month #48 f. Total interest paid at the end of the loan
Solution
Answer:Answer:Loan amount =$100,000Loan amortization
schedule:APR
=12%1$2,633.38$1,000$1,633.38$98,366.62Time

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=4years2$2,633.38$983.67$1,649.72$96,716.903$2,633.3
8$967.17$1,666.21$95,050.68Repayment
schedule:4$2,633.38$950.51$1,682.88$93,367.81Jan-
AugYes($3,667.09)85$2,633.38$933.68$1,699.71$91,668.
10Sep-AprSkipPrinciple
outstanding$86,466.326$2,633.38$916.68$1,716.70$89,95
1.40May-
SepYes57$2,633.38$899.51$1,733.87$88,217.53Oct-
MarSkip8$2,633.38$882.18$1,751.21$86,466.32Apr-
OctYes79$2,633.38$864.66$1,768.72$84,697.60Nov-
FebSkip10$2,633.38$846.98$1,786.41$82,911.19Mar-
OctYes811$2,633.38$829.11$1,804.27$81,106.92Total281
2$2,633.38$811.07$1,822.31$79,284.6113$2,633.38$792.
85$1,840.54$77,444.07Thereofre EMI for 28 months
=($2,633.38)14$2,633.38$774.44$1,858.94$75,585.1315$2
,633.38$755.85$1,877.53$73,707.6016$2,633.38$737.08$
1,896.31$71,811.2917$2,633.38$718.11$1,915.27$69,896.
0218$2,633.38$698.96$1,934.42$67,961.5919$2,633.38$6
79.62$1,953.77$66,007.8320$2,633.38$660.08$1,973.31$
64,034.5221$2,633.38$640.35$1,993.04$62,041.4822$2,6
33.38$620.41$2,012.97$60,028.5123$2,633.38$600.29$2,
033.10$57,995.4224$2,633.38$579.95$2,053.43$55,941.9
925$2,633.38$559.42$2,073.96$53,868.0226$2,633.38$53
8.68$2,094.70$51,773.3227$2,633.38$517.73$2,115.65$4
9,657.6728$2,633.38$496.58$2,136.81$47,520.8629$2,63

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Excel Lab Case 1: Gizmo Gizmo, a small manufacturing company whose management wishes to reduce overhead by installing a new, energy efficient heating system. The new system costs $100K. due to the company \'s insufficient cash reserves, the management has decided that borrowing money is the only way to finance the desired improvement A problem arises when Gizmo \'s accountant points out that a standard direct reduction loan would severely strain the firm\'s cash flow during the heating season. In order to overcome this difficulty, the accountant suggests a periodic linear gradient series repayment scheme (G-$75) in a skip payment loan @ 12% APR compounded monthly Month January -August September-April May-September October-March AprilOctober November-February March-December Repayment Yes Skip Yes Skip Yes Skip Yes 1. Develop a worksheet repayment schedule for 4 years 2. Select the BB case ...
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