Question

You take out a 20-year loan in the amount of $450,000 at a 4 percent annual...

You take out a 20-year loan in the amount of $450,000 at a 4 percent annual rate. The loan is to be paid off by equal monthly installments over 20 years. Draw an amortization table showing the beginning balance, total payment, principal repayment, interest payment and ending balance for each month. How much is the total interest payment for the first four months? (show only four months on the table).

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Answer #1
amount 450000
interest 4.00%
periodicity monthly
time 20
effective rate of interest 0.003333333
total no. of payments 240
installment ₹ 2,717.85
no. of payments begining balance installments interest principal prepayment closing balance
1 450000 ₹ 2,717.85 1500 ₹ 1,217.85 ₹ 4,48,782.15
2 ₹ 4,48,782.15 ₹ 2,717.85 1495.910295 ₹ 1,221.94 ₹ 4,47,560.21
3 ₹ 4,47,560.21 ₹ 2,717.85 1491.806958 ₹ 1,226.05 ₹ 4,46,334.16
4 ₹ 4,46,334.16 ₹ 2,717.85 1487.689943 ₹ 1,230.16 ₹ 4,45,104.00

TOTAL INTERST PAYMENT = SUM OF FIRST 4 MONTHS = 1500 + 1495.91 + 1491.81 + 1487.69 =  5975.41

PLEASE APPRECIATE THE WORK

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