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John borrowed a $10,000 24-month installment loan with APR 5%. Amortize the loan for the first...

John borrowed a $10,000 24-month installment loan with APR 5%. Amortize the loan for the first two months.

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Answer #1
P = Regular Payments
PV = Loan Amount
r = rate of interest
n = no of periods
P = r (PV)
1 - (1 + r )^-n
P = (5%/12)*10000
1 - (1 / (1 + 5%/12)^24))
P = 41.66666667
0.094974577
P = 438.71
Beginning Balance Interest Principal Ending Balance
1 $10,000.00 $41.67 $397.05 $9,602.95
2 $9,602.95 $40.01 $398.70 $9,204.25
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