Bob Jones bought a new log cabin for $77,000 at 10.5% interest for 30 years. Pre
ID: 2763037 • Letter: B
Question
Bob Jones bought a new log cabin for $77,000 at 10.5% interest for 30 years. Prepare an amortization schedule for the first three periods. (Use Table 15.1.) (Do not round intermediate calculations. Round your final answers to the nearest cent.)
Portion to—
Bob Jones bought a new log cabin for $77,000 at 10.5% interest for 30 years. Prepare an amortization schedule for the first three periods. (Use Table 15.1.) (Do not round intermediate calculations. Round your final answers to the nearest cent.)
Explanation / Answer
Present Value $77,000 Rate 10.50% Nper 30 PMT(10.50%,30,-77000) $8,510.69 Payment number Interest = outstanding bal x 10.50% Principal = $8510.69-Interest Balance of loan outstanding = outstanding bal.- principal 0 $77,000 1 $8,085 $425.69 $76,574.31 2 $8,040.3 $470.39 $76,103.92 3 $7,990.91 $519.78 $75,584.13