Question 7 (of 7) 10.00 points Problem 5-55 Amortization with Equal Payments [LO

Question

Question 7 (of 7) 10.00 points Problem 5-55 Amortization with Equal Payments [LO 3] Prepare an amortization schedule for a three-year loan of $81,000. The interest rate is 8 percent per year, and the loan calls for equal annual payments. Leave no cells blank. Enter '0' where necessary. Do not round Intermediate calculations and round your answers to 2 decimal places, e.g., 32 Beginning Balance Total Payment Ending Interest Payment Principal Payment Year 2 Total interest References eBook & Resources Worksheet Difficulty: 2 Intermediate Problem 5-55 Amortization with Equal Payments [LO 3] Learning Objective: 05-03 Describe how loans are amortized or paid off

Explanation / Answer

Calculation of annual payments = 81000/Pvf @8% for 3 yrs

=81000/2.58 =31395.35

Year Beginning balance Total payment interest payment Principal payment Ending balance 1.00 81000.00 31395.35 6480.00 24915.35 56084.65 2.00 56084.65 31395.35 4486.77 26908.58 29176.07 3.00 29176.07 31395.35 2334.09 29176.07 0.00

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---