Northlake Nordic Centre Inc. borrows 100,000 at 6 %, repayable in five equal annual blended payments of 23,739.64. Complete year 1 of the schedule.

Answer

Interest expense, year 1 → 6000 · Principal repaid, year 1 → 17739.64 · Loan balance, end of year 1 → 82260.36

Cells - Interest expense, year 1 · ±0.01 - Principal repaid, year 1 · ±0.01 - Loan balance, end of year 1 · ±0.01 Interest = opening balance × rate = 100,000 × 6 % = **6,000**. Principal = payment − interest = 23,739.64 − 6,000 = **17,739.64**. Closing = 100,000 − 17,739.64 = **82,260.36**. Excel: `=IPMT(6%,1,5,-100000)` and `=PPMT(6%,1,5,-100000)`.

Authored (concept map E7 — no ADAPT source has the schedule); Dauderis & Annand §9.5 for the shape only; payment verified with PMT(6%,5,-100000) = 23,739.64