Prepare an amortization schedule for a five-year loan of $68,000. The interest r
ID: 2612729 • Letter: P
Question
Prepare an amortization schedule for a five-year loan of $68,000. The interest rate is 7 percent per year, and the loan calls for equal annual payments. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Leave no cells blank - be certain to enter "0" wherever required.)
How much interest is paid in the third year? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
How much total interest is paid over the life of the loan? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Prepare an amortization schedule for a five-year loan of $68,000. The interest rate is 7 percent per year, and the loan calls for equal annual payments. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Leave no cells blank - be certain to enter "0" wherever required.)
Explanation / Answer
Principal $68,000 Interest Rate 7% Period 5 Year Beginning Balance Total Payment Interest Payment Principal Payment Ending Payment 1 $68,000.00 -$16,584.57 -$4,760.00 -$11,824.57 $56,175.43 2 $56,175.43 -$16,584.57 -$3,932.28 -$12,652.29 $43,523.15 3 $43,523.15 -$16,584.57 -$3,046.62 -$13,537.95 $29,985.20 4 $29,985.20 -$16,584.57 -$2,098.96 -$14,485.60 $15,499.60 5 $15,499.60 -$16,584.57 -$1,084.97 -$15,499.60 $0.00 -$14,922.84 How much interest is paid in the third year Interest paid -$3,046.62 How much total interest is paid over the life of loan Total Interest paid -$14,922.84