Question

Find the amortization table for a $23,000 loan amortized over 3 years with semiannual payments if the interest rate is 6.1% per year compounded semiannually. (Round your answers to the nearest cent.) End of Period Payment Made Payment Toward Interest Payment Toward Principal Outstanding Principle 0 23000 1 2 3 4 5 6

Answer 1

	Semi Annual rate(M)=	yearly rate/2=	3.05%	Semi Annual payment=	4252.78
Half year	Beginning balance (A)	Semi Annual payment	Interest = M*A	Principal paid	Ending balance
1	23000.00	4252.78	701.50	3551.28	19448.72
2	19448.72	4252.78	593.19	3659.60	15789.12
3	15789.12	4252.78	481.57	3771.21	12017.91
4	12017.91	4252.78	366.55	3886.23	8131.68
5	8131.68	4252.78	248.02	4004.77	4126.91
6	4126.91	4252.78	125.87	4126.91	0.00

Where

Interest paid = Beginning balance * Semi Annual interest rate

Principal = Semi Annual payment – interest paid

Ending balance = beginning balance – principal paid

Beginning balance = previous Half year ending balance