Question

A loan of $470,000 is amortized over 30 years with payments at the end of each month and an interest rate of 6.5%, compounded monthly.

Use Excel to create an amortization table showing, for each of the 360 payments, the beginning balance, the interest owed, the principal, the payment amount, and the ending balance.

Answer the following, rounding to the nearest penny.

a) Find the amount of each payment. $  
b) Find the total amount of interest paid during the first 15 payments. $

c) Find the total amount of interest paid over the life of the loan. $

d) Find the total of all payments made over 30 years. $


Suppose that payment number 6 is skipped and the interest owed for month 6 is added to the balance. Payments then resume as usual for the remainder of the 30 years.
e) Find the balance owing at the end of month 6. $
f) Find the balance remaining after the 360th payment. $

Answer 1

a) Each Payment		$2,970.72
b)Find the total amount of interest paid during the first 15 payments. $		$37,940.08
c)Find the total amount of interest paid over the life of the loan. $		$5,99,459.10
d) Find the total of all payments made over 30 years. $		$10,69,459.10
Suppose that payment number 6 is skipped and the interest owed for month 6 is added to the balance. Payments then resume as usual for the remainder of the 30 years.
			e) Find the balance owing at the end of month 6. $		$4,70,386.63
f)Find the balance remaining after the 360th payment. $		$20,108.24