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Prepare an amortization schedule for a three-year loan of $60,000. The interest

ID: 2622816 • Letter: P

Question

Prepare an amortization schedule for a three-year loan of $60,000. The interest rate is 9 percent per year, and the loan calls for equal annual payments. How much total interest is paid over the life of the loan? (Do not include the dollar signs ($). Enter rounded answer as directed, but do not use the 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 $60,000. The interest rate is 9 percent per year, and the loan calls for equal annual payments. How much total interest is paid over the life of the loan? (Do not include the dollar signs ($). Enter rounded answer as directed, but do not use the 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

Year Beginning Total Interest Principal Ending Balance Payment Payment Payment Balance 1       60,000.00         23,703.29      5,400.00      18,303.29    41,696.71 2       41,696.71         23,703.29      3,752.70      19,950.59    21,746.12 3       21,746.12         23,703.29      1,957.17      21,746.12              0.00 Total interest    11,109.87