Question

if an $8000 loan is amortized with four quarterly payments at 13% interest compounded quarterly, the quarterly payment is $2,165.10. Construct an amortization schedule for this loan.

Answer 1

Number of	Beginning	Quarterly	Interest	Reduction of	Ending
Quarter	Loan Value	Payment	Expense	Principal	Loan Value
	a	b	c=a*13%*1/4	d=b-c	e=a-d
1	$ 8,000.00	$ 2,165.10	$ 260.00	$ 1,905.10	$ 6,094.90
2	$ 6,094.90	$ 2,165.10	$ 198.08	$ 1,967.02	$ 4,127.88
3	$ 4,127.88	$ 2,165.10	$ 134.16	$ 2,030.94	$ 2,096.94
4	$ 2,096.94	$ 2,165.10	$    68.15	$ 2,096.95	$        -0.01