Prepare an amortization schedule for a three-year loan of $90,000. The interest
ID: 2427877 • Letter: P
Question
Prepare an amortization schedule for a three-year loan of $90,000. The interest rate is 11 percent per year, and the loan calls for equal annual payments. How much total interest is paid over the life of the loan?(Enter rounded answers as directed, but do not use rounded numbers in intermediate calculations.Round your answers to 2 decimal places (e.g., 32.16). Leave no cells blank. You must enter '0' for the answer to grade correctly.)
Year
Beginning
Balance
Total
Payment
Interest
Payment
Principal
Payment
Ending
Balance
1
$
$
$
$
$
2
3
Prepare an amortization schedule for a three-year loan of $90,000. The interest rate is 11 percent per year, and the loan calls for equal annual payments. How much total interest is paid over the life of the loan?(Enter rounded answers as directed, but do not use rounded numbers in intermediate calculations.Round your answers to 2 decimal places (e.g., 32.16). Leave no cells blank. You must enter '0' for the answer to grade correctly.)
Explanation / Answer
Loan value = 90000 ; term = 3 years ; interest rate = 11%
Equal Annual payments = = [P x R x (1+R)^N]/[(1+R)^N-1] = (90000 * 11% * ( 1 + 11%) ^ 3 )/ ((1 + 11%)^ 3 -1) = 36829.18
Year Beginning balance Annual Payments Interest Payment Principal Payment Ending balance a b c d = b * 11% e = c-d f = b - e 1 90,000.00 36,829.18 9,900.00 26,929.18 63,070.82 2 63,070.82 36,829.18 6,937.79 29,891.39 33,179.43 3 33,179.43 36,829.18 3,649.74 33,179.44 (0.00) Total 110,487.54 20,487.53