Question

Please set up Loan Amortization Schedules for the following question: You borrow $2000 at the rate of 12%, compounding monthly. You need to make monthly payment for three years.

Answer 1

Loan amortization Schedule:
Month ended	Beginning Loan	Interest	Monthly Payment	Reduction of loan	Ending Loan
	a	b=a*12%*1/12	c	d=c-b	e=a-d
1	$ 2,000.00	$       20.00	$       66.43	$       46.43	$ 1,953.57
2	$ 1,953.57	$       19.54	$       66.43	$       46.89	$ 1,906.68
3	$ 1,906.68	$       19.07	$       66.43	$       47.36	$ 1,859.32
4	$ 1,859.32	$       18.59	$       66.43	$       47.84	$ 1,811.48
5	$ 1,811.48	$       18.11	$       66.43	$       48.31	$ 1,763.17
6	$ 1,763.17	$       17.63	$       66.43	$       48.80	$ 1,714.37
7	$ 1,714.37	$       17.14	$       66.43	$       49.28	$ 1,665.09
8	$ 1,665.09	$       16.65	$       66.43	$       49.78	$ 1,615.31
9	$ 1,615.31	$       16.15	$       66.43	$       50.28	$ 1,565.03
10	$ 1,565.03	$       15.65	$       66.43	$       50.78	$ 1,514.25
11	$ 1,514.25	$       15.14	$       66.43	$       51.29	$ 1,462.97
12	$ 1,462.97	$       14.63	$       66.43	$       51.80	$ 1,411.17
13	$ 1,411.17	$       14.11	$       66.43	$       52.32	$ 1,358.85
14	$ 1,358.85	$       13.59	$       66.43	$       52.84	$ 1,306.01
15	$ 1,306.01	$       13.06	$       66.43	$       53.37	$ 1,252.64
16	$ 1,252.64	$       12.53	$       66.43	$       53.90	$ 1,198.74
17	$ 1,198.74	$       11.99	$       66.43	$       54.44	$ 1,144.30
18	$ 1,144.30	$       11.44	$       66.43	$       54.99	$ 1,089.31
19	$ 1,089.31	$       10.89	$       66.43	$       55.54	$ 1,033.78
20	$ 1,033.78	$       10.34	$       66.43	$       56.09	$     977.69
21	$     977.69	$          9.78	$       66.43	$       56.65	$     921.04
22	$     921.04	$          9.21	$       66.43	$       57.22	$     863.82
23	$     863.82	$          8.64	$       66.43	$       57.79	$     806.03
24	$     806.03	$          8.06	$       66.43	$       58.37	$     747.66
25	$     747.66	$          7.48	$       66.43	$       58.95	$     688.71
26	$     688.71	$          6.89	$       66.43	$       59.54	$     629.17
27	$     629.17	$          6.29	$       66.43	$       60.14	$     569.03
28	$     569.03	$          5.69	$       66.43	$       60.74	$     508.29
29	$     508.29	$          5.08	$       66.43	$       61.35	$     446.94
30	$     446.94	$          4.47	$       66.43	$       61.96	$     384.99
31	$     384.99	$          3.85	$       66.43	$       62.58	$     322.41
32	$     322.41	$          3.22	$       66.43	$       63.20	$     259.20
33	$     259.20	$          2.59	$       66.43	$       63.84	$     195.37
34	$     195.37	$          1.95	$       66.43	$       64.47	$     130.89
35	$     130.89	$          1.31	$       66.43	$       65.12	$       65.77
36	$       65.77	$          0.66	$       66.43	$       65.77	$         0.00
Total		$     391.43	$ 2,391.43	$ 2,782.86
Working:
Present value of annuity of 1	=	(1-(1+i)^-n)/i		Where,
	=	(1-(1+0.01)^-36)/0.01		i	=	1%
	=	30.107505		n	=	36
Monthly payment	=	Loan amount	/	Present value of annuity of 1
	=	$ 2,000.00	/	30.107505
	=	$       66.43