A design studio received a loan of $7,250 at 3.30% compounded semi-annually to purchase a camera. If they settled the loan in 3 years by making quarterly payments, construct the amortization schedule for the loan and answer the following questions:
a. What was the payment size?
Round to the nearest cent
b. What was the size of the interest portion on the first payment?
Round to the nearest cent
c. What was the balance of the loan at end of the first year?
Round to the nearest cent
d. What was the size of the interest portion on the last payment?
Round to the nearest cent
1.
612.26
2.
14.89
3.
4853.14
4.
1.26
Below is the amortization schedule
| Payment | Loan beginning balance | Payment | Interest payment | Principal payment | Loan ending balance |
| 1 | 7250 | $612.26 | $14.89 | $597.37 | $6,652.63 |
| 2 | $6,652.63 | $612.26 | $13.66 | $598.60 | $6,054.03 |
| 3 | $6,054.03 | $612.26 | $12.44 | $599.83 | $5,454.20 |
| 4 | $5,454.20 | $612.26 | $11.20 | $601.06 | $4,853.14 |
| 5 | $4,853.14 | $612.26 | $9.97 | $602.29 | $4,250.85 |
| 6 | $4,250.85 | $612.26 | $8.73 | $603.53 | $3,647.31 |
| 7 | $3,647.31 | $612.26 | $7.49 | $604.77 | $3,042.54 |
| 8 | $3,042.54 | $612.26 | $6.25 | $606.01 | $2,436.53 |
| 9 | $2,436.53 | $612.26 | $5.00 | $607.26 | $1,829.27 |
| 10 | $1,829.27 | $612.26 | $3.76 | $608.51 | $1,220.76 |
| 11 | $1,220.76 | $612.26 | $2.51 | $609.76 | $611.01 |
| 12 | $611.01 | $612.26 | $1.26 | $611.01 | $0.00 |
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