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

Question

Prepare an amortization schedule for a five-year loan of $60,000. The interest rate is 9 percent per year, and the loan calls for equal annual payments. (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

  

  

How much interest is paid in the third year? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

  

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 round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

  

Prepare an amortization schedule for a five-year loan of $60,000. The interest rate is 9 percent per year, and the loan calls for equal annual payments. (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

Explanation / Answer

Principal amount to be paid = 60000

EMI=P*r*(1+r)n/(1+r)n-1

EMI=60000*9%+1.53/.53 =15589

Yearly EMI=15589

Total Amount=15589*5=77945

4483(49811*9%)

In third year interest of $ 12106 is paid

Interest Paid=77945-60000=17945

Beginning Balance Total Payment Interest Principal Cl. Balance 60000 15589 5400(60000*9%) 10189(15589-5400) 49811 49811 15589

4483(49811*9%)

11106 38705 38705 15589 3483(38705*9%) 12106 26599 26599 15589 2394(26599*9% 13195 13404 13404 15589 2185 13404 0

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