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

Hi,

Please find the detailed answer as follows:

Part A:

Interest Paid = 3041.94

Part B:

Total Interest Paid = 14730.08

Thanks.

Beginning Balance Total Payment Interest Payment Principal Payment Ending Balance 60000 14946.02 4996.21 9949.81 50050.19 50050.19 14946.02 4062.85 10883.17 39167.02 35104.17 14946.02 3041.94 11904.08 23200.09 23200.09 14946.02 1925.25 13020.77 10179.32 -14242.2 14946.02 703.82 14242.2 0.00

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---