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Prepare an amortization schedule for a three-year loan of $102,000. The interest

ID: 2639576 • Letter: P

Question

Prepare an amortization schedule for a three-year loan of $102,000. The interest rate is 11 percent per year, and the loan agreement calls for a principal reduction of $34,000 every year. 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. Leave no cells blank. You must enter '0' for the answer to grade correctly.)

   

Total interest payment___________

Prepare an amortization schedule for a three-year loan of $102,000. The interest rate is 11 percent per year, and the loan agreement calls for a principal reduction of $34,000 every year. 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. Leave no cells blank. You must enter '0' for the answer to grade correctly.)

Prepare an amortization schedule for a three-year loan of $102,000. The interest rate is 11 percent per year, and the loan agreement calls for a principal reduction of $34,000 every year. 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. Leave no cells blank. You must enter '0' for the answer to grade correctly.) Total interest payment___________

Explanation / Answer

YEAR

Beginning

Total

Interest

Principal

Ending

Balance

Payment   

Payment

Payment   

Balance

1

1,02,000

34,000

$11,220

$22,780

68000.00

2

68,000

34,000

8,714.20

25,285.80

34000.00

3

34,000

34,000

5,932.76

28,067.24

0.00

Total interest payment: 14,646.96

I hope my solution solves your query.

Regards.

YEAR

Beginning

Total

Interest

Principal

Ending

Balance

Payment   

Payment

Payment   

Balance

1

1,02,000

34,000

$11,220

$22,780

68000.00

2

68,000

34,000

8,714.20

25,285.80

34000.00

3

34,000

34,000

5,932.76

28,067.24

0.00