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Find the amortization table for a $23,000 loan amortized in five annual payments if the interest...

Find the amortization table for a $23,000 loan amortized in five annual payments if the interest rate is 8.5% per year compounded annually. (Round your answers to the nearest cent.)

Math   Statistics-And-Probability   
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Answer #1

The amount of the loan (principal) is: L=23000, the interest rate r=0.085, and the term is for n=5 years.

The annual payments are therefore : 471.88 * 12 = 5662.56

The following table shows the amortization schedule for this loan:

Year Payment Interest Principal Balance
0 23000
1 5662.56 1807.09 3855.47 251263.7
2 5662.56 1466.32 4196.26 202811.6
3 5662.56 1095.39 4567.17 150076.8
4 5662.56 691.7 4970.86 92680.73
5 5662.56 252.32 5410.24 30211.36

Please let me know in comments if anything is unclear. Will reply ASAP. Please upvote if satisfied!

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