Prepare an amortization schedule for a five-year loan of $53,000. The interest r
ID: 2764866 • Letter: P
Question
Prepare an amortization schedule for a five-year loan of $53,000. The interest rate is 7 percent per year, and the loan calls for equal annual payments. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Leave no cells blank - be certain to enter "0" wherever required.) How much interest is paid in the third year? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) How much total interest is paid over the life of the loan? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)Explanation / Answer
Answer a
Annual payment
-12,926.21
PMT(7%,5,53000,,0)
Year
Beginning balance
Total payment
Interest payment
Principal payment
Ending balance
1
53,000.00
12,926.21
3,710.00
9,216.21
43,783.79
2
43,783.79
12,926.21
3,064.87
9,861.34
33,922.45
3
33,922.45
12,926.21
2,374.57
10,551.64
23,370.82
4
23,370.82
12,926.21
1,635.96
11,290.25
12,080.57
5
12,080.57
12,926.21
845.64
12,080.57
-
11,631.03
Answer b
2374.57
An swer c
11631.03
Annual payment
-12,926.21
PMT(7%,5,53000,,0)
Year
Beginning balance
Total payment
Interest payment
Principal payment
Ending balance
1
53,000.00
12,926.21
3,710.00
9,216.21
43,783.79
2
43,783.79
12,926.21
3,064.87
9,861.34
33,922.45
3
33,922.45
12,926.21
2,374.57
10,551.64
23,370.82
4
23,370.82
12,926.21
1,635.96
11,290.25
12,080.57
5
12,080.57
12,926.21
845.64
12,080.57
-
11,631.03