Critical Thinking Questions Case 4-1 Bill Has a Bicycle Repair

question 4

Multiple Choice

Critical Thinking Questions Case 4-1 Bill has a bicycle repair shop in his basement. He would like a larger workshop so he investigates taking out a loan to convert his garage to a workshop. He uses Excel to create an amortization schedule. Bill would like to borrow $50,000 and pay it off in 10 years. What components will he need to identify for a loan amortization schedule created on an Excel worksheet?

• A) beginning and ending loan balance
• B) year, rate, monthly interest
• C) beginning and ending loan balance and the amount of payment that applies to the principal and interest per year
• D) interest paid at the beginning and end of the year

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