Question

Create the amortization schedule for a loan of $10,500, paid monthly over three years using an APR of 8 percent. Enter the data for the first three months. (Round your answers to 2 decimal places.)

	Month Beginning Balance Total Payment Interest Paid Principal Paid Ending Balance 1 2 3

Answer 1

		P =	Regular Payments
		PV =	Loan Amount
		r =	rate of interest
		n =	no of periods
		P =	r (PV)
			1 - (1 + r )-n
		P =	(8%/12)*10500
			1 - (1 / (1 + 8%/12)^36))
		P =	70
			0.21274537
		P =	329.03
MONTH	Beginning Balance	TOTAL PAYMENT	Interest	Principal	Ending Balance
1	$10,500.00	$ 329.03	$70.00	$259.03	$10,240.97
2	$10,240.97	$ 329.03	$68.27	$260.76	$9,980.21
3	$9,980.21	$ 329.03	$66.53	$262.50	$9,717.71