Question

Loan amortization schedule Personal Finance Problem Joan Messineo borrowed $49,000 at a 3% annual rate of interest to be repaid over 3 years. The loan is amortized into three equal, annual, end-of-year payments.

a. Calculate the annual, end-of-year loan payment.

b. Prepare a loan amortization schedule showing the interest and principal breakdown of each of the three loan payments.

c. Explain why the interest portion of each payment declines with the passage of time.

a. The amount of the equal, annual, end-of-year loan payment is $ . (Round to the nearest cent.)

Answer #1

Answer a.

Amount borrowed = $49,000

Interest rate = 3%

Time period = 3 years

Let annual payment be $x

$49,000 = $x/1.03 + $x/1.03^2 + $x/1.03^3

$49,000 = $x * (1 - (1/1.03)^3) / 0.03

$49,000 = $x * 2.828611

$x = $17,322.99

Annual payment = $17,322.99

Answer b.

Answer c.

Through annual end-of-the-year payments, the principal balance of the loan is declining, causing less interest to be accrued on the balance.

Loan amortization schedule Personal Finance
Problem Joan Messineo borrowed 41,000
at a 4% annual rate of interest to be repaid over 3 years. The
loan is amortized into three equal, annual, end-of-year
payments.
a. Calculate the annual, end-of-year loan
payment.
b. Prepare a loan amortization schedule
showing the interest and principal breakdown of each of the three
loan payments.
c. Explain why the interest portion of each
payment declines with the passage of time.

?Joan Messineo borrowed $16,000at a15%annual
rate of interest to be repaid over 3 years. The loan is amortized
into three? equal, annual,? end-of-year paymen
a.??Calculate the? annual, end-of-year loan
payment.
b.??Prepare a loan amortization schedule
showing the interest and principal breadown of each of the three
loan payments.
c. Explain why the interest portion of each
payment declines with the passage of time.
?Show calculations

Paulo borrowed $15,000 at a 14% annual rate of interest to be
repaid over 3 years. The loan is amortized into three equal,
annual, end-of-year payments.
a) Calculate the annual, end-of-year loan payment.
b) Prepare a loan amortization schedule showing the interest and
principal breakdown of
each of the three loan payments.
c) Explain why the interest portion of each payment declines with
the passage of time.

Construct an amortization schedule for a $20,000, 3.45% annual
rate loan with 3 equal payments. Please complete the
schedule below as you see fit.
Year Beg.
Balance
Payment Interest Principal End
Balance

Construct an amortization schedule for a $1,000, 8% annual rate
loan with 3 equal payments. The first payment will be made at the
end of the1st year. Find the required annual payments
$355.8
$367.2
$388.0
$390.7
Based on the information from above, what’s the ending balance
of the amortized loan at the end of the second year
$0
$359.4
$388.3
$682.8
Based on the information from above, calculate the total amount
of interests you should pay for the amortized loan...

Construct an amortization schedule for a $1,000, 8% annual rate
loan with 3 equal payments. The first payment will be made at the
end of the1st year. Find the required annual payments
$355.8
$367.2
$388.0
$390.7
Based on the information from Question 37, what’s the ending
balance of the amortized loan at the end of the second year
$0
$359.4
$388.3
$682.8
Based on the information from Question 37 and 38, calculate the
total amount of interests you should pay...

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$10,000 mortgage as part of the payment. The 10-year mortgage has a
11% nominal interest rate, but it calls for semiannual payments
beginning next June 30. Next year Jan must report on Schedule B of
her IRS Form 1040 the amount of interest that was included in the
two payments she received during the year.
a. What is the dollar amount of each payment Jan receives? Round
your...

a. Complete an amortization schedule for a $28,000 loan to be
repaid in equal installments at the end of each of the next three
years. The interest rate is 11% compounded annually. Round all
answers to the nearest cent.
Beginning
Repayment
Ending
Year
Balance
Payment
Interest
of Principal
Balance
1
$
$
$
$
$
2
$
$
$
$
$
3
$
$
$
$
$

An amortization table reports the amount of interest and
principal contained within each regularly scheduled payment used to
repay an amortized loan.
Example Amortization Schedule
Year
Beginning
Amount
Payment
Interest
Repayment of
Principal
Ending
Balance
1
2
3
Consider the amount of the interest payments included in each of
the payments of an amortized loan. Which of the following
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true?
The portion of the payment going toward interest is smaller in...

Set up an amortization schedule for a $30,000 loan to be repaid
in equal installments at the end of each of the next 3 years. The
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