Question

You take out a 15-year loan amount in the amount of $300,000 at a 7% rate annually. The loan is to be paid off by equally monthly installments over 15 years. Draw an amortization table showing the beginning balance, total payment, principle repayment, interest payment, and ending balance for each month. How much is the total interest payment for the 5 months? (Show only 5 months on the table)

***Please show all work***

Answer 1

	P =	Regular Payments
	PV =	Loan Amount
	r =	rate of interest
	n =	no of periods
	P =	r (PV)
		1 - (1 + r )-n
	P =	(7%/12)*300000
		1 - (1 / (1 + 7%/12)^180))
	P =	1750
		0.648993086
	P =	2696.48
	Beginning Balance	TOTAL PAYMENT	Principal	Interest	Ending Balance
1	$300,000.00	$2696.48	$946.48	$1,750.00	$299,053.52
2	$299,053.52	$2696.48	$952.01	$1,744.48	$298,101.51
3	$298,101.51	$2696.48	$957.56	$1,738.93	$297,143.95
4	$297,143.95	$2696.48	$963.15	$1,733.34	$296,180.80
5	$296,180.80	$2696.48	$968.76	$1,727.72	$295,212.04