Question

Create the amortization schedule for a loan of $18,000, paid monthly over three years using an APR of 9 percent. Enter the data for the first three months.

Answer 1

EMI = [P * I *  (1+I)^N]/[(1+I)^N-1]
P =loan amount or Principal = 18000
I = Interest rate per month = 9/12 = 0.75%
N = the number of installments = 3*12 = 36 (12 months for 3 years)

EMI = [18000*0.75%*(1+0.0075)^36]/[(1+0.0075)^36-1] = 572.40

Month	Opening balance	Total Payment (EMI)	Interest paid	Principal paid	End balance
1	18000	572.40	135 (18000*9%/12)	437.40 (572.40-135)	17562.60
2	17562.60	572.40	131.72	440.68	17121.92
3	17121.92	572.40	128.41	443.99	16677.93