1. Prepare an amortization schedule for a 5-year loan of $39,000. The interest rate is 9 percent per
year, and the loan calls for equal annual payments.
Beggining Balance Total Payment Interest Payment Principal Payment Ending Balance
1. 39,000
2
3
4
5
Total Interest Paid______
Solution
Beggining Balance Total Payment Interest Payment Principal Payment Ending Balance 1
39,000.00 10,026.61 3,510.00 6,516.61
32,483.39 2 32,483.39 10,026.61 2,923.51
7,103.10 25,380.29 3 25,380.29 10,026.61 2,284.23
7,742.38 17,637.90 4 17,637.90 10,026.61
1,587.41 8,439.20 9,198.70 5 9,198.70
10,026.61 827.91 9,198.70 0.00 Total Interest Paid
11,133.05