Question

you make quarterly (and of quarter payments of $1,75743. The You borrowed $100.000 exactly 2 years ago. The loan is structured as an amortized loan. The interest rate is is amortized over 25 years. How much principal have you paid over the first 2 years! How much principal have you paid over the first 2 years? (Round to the nearest dolar.)

Answer 1

Please refer to below spreadsheet for calculation and answer. Cell reference also provided.

$100,000.00 Nm 7000 Loan Amount Term(years) Annual interest rate Quarterly interest rate No. of Quarterly payment Quarterly payment 1.25% 100 $1,757.43 Principal paid in first 2 years $4,242 -

Cell reference -

Loan Amount Term(years) Annual interest rate Quarterly interest rate No. of Quarterly payment Quarterly payment 100000 25 0.05 =C4/4 =C3*4 =PMT(C5,C6,-C2,0) Principal paid in first 2 years =-CUMPRINC(C5, C6, C2, 1,8,0)

Hope this will help, please do comment if you need any further explanation. Your feedback would be highly appreciated.