Question

Find the amortization table for a $23,000 loan amortized over 3 years with semiannual payments if the interest rate is 5.3% per year compounded semiannually. (Round your answers to the nearest cent.) End of Payment Period Made Payment Toward Interest Payment Toward Principal Outstanding Principle 23000

Answer 1

To find amortisshion table, first we need to find payment per period or Semiannus! Payment, equenon fort this is a payment = S&P " 1-(trjun neve pis amount borroweel = 23000 r is rate of interest indecimal for each period o here rate per year is 5.3%. So semiannual rate is 5.3 = 2.65* - so r= 0.0265 nis number of payment to . for each year we have to pay a times. for 3 3 years we have to pay 6 times. So n=6 . 0.02654 23 00 O so payment = = 4196.62 +0.0265) 6

so semiannual payment is 4196.62 @ first interest is 2.651 23600 - 23000* 265 = 609.5 OD Payment to principle on = Payment - Interest 2 = 4196.62-609.5 = 3587:12 outstanding principle = 22 outstanding principle before - payment towards principle = 23000 - 3 587.12 =19412.88 so first row is 4196.62 609.5 3587.12 19412.88

for second row (2) payment is sane = 4196.62 Interest - outstanding Principley Interest rate before 100 - 19412.88 * 2.65 = 514.44 100 payment to principle= 4196.62 - 514.44 = 3682.18 outstanding Poincple = 19412.88-3682.15 =15730.7 so second row 2 4196.62 514.44 OSD 15730.7 3682.18 for third (3) Payment = 4196.62 , interest - 15730 7*:65 4196.62 =416.86 Principle = HT80 - 416.86 = 3779.76 Outstanding principle = 15730.7-377976=11950. 100 94

3rd row 3 4196.62 416.86 11950.94 10 3779.76 for 4th Payment = 4196.62 Interest - 119 50.7 * 2.65 = 316.70 Principle =3879.92 - outstandig Principle = 11950.94-3879.92 = 8071.02 sth for payment = 4196.62 Interest = 8071 02x2.65 100 = 21388 principle = 419662-213.88=3982.74 outstanding = 8071.02-3982.74 - 4088.28

for 6th Payment = 4196.62 Interest-4088.28 * 2.65 Too = 108.34 Principle = 4088.28 outstandine Princple = 0.0 End Payment of feria Outstandig Principle o 23000 4196.621 609.50 3581.12 19412.88 2 15730.70 4196.62 514.44 3682.18 3 4196.62 416.86 | 3719.76 4196.62 316.70 13879.92 S. 4196.62 213.883982.74 64196-67 108:344088.28 11950.94 8071.02 4088.28 0.00