Question

We entered into a 2 year loan on January 1^st for $100,000 at 5% compounded monthly with a monthly payment of $13,397. What would the monthly interest and principal amounts for the first two months?

Answer 1

Month		Interest	Principal
1		$ 416.67	$ 12,980.33
2		$ 362.58	$ 13,034.42
Working:
	# 1	Month	Interest Expense		Monthly Payment		Reduction in principal			Ending Loan Balance
		0								$        1,00,000
		1	$       416.67		$ 13,397		$ 12,980.33			$     87,019.67
		2	$       362.58		$ 13,397		$ 13,034.42			$     73,985.25
	# 2
		Monthly Interest for month of:
		1	$   1,00,000	*	5% *1/12	=	$       416.67
		2	$       87,020	*	5% *1/12	=	$       362.58