2) | ||||||
FV | PV | PMT | Payment Period (year) | Term (years) | Conversion | |
Given | 2581 | 0 | 540 | 1 | 4 | Monthly |
Nominal Annual Rate | 7.25% | |||||
Effective Rate | 7.50% | |||||
3) Amortization | ||||||
Payment Number | Amount Paid | Interest paid | Principal Repaid | Outstanding Principal | ||
0 | $ 13,000.00 | |||||
1 | $1,800.00 | $ 260.00 | $ 1,540.00 | $ 11,460.00 | ||
2 | $1,800.00 | $ 229.20 | $ 1,570.80 | $ 9,889.20 | ||
3 | $1,800.00 | $ 197.78 | $ 1,602.22 | $ 8,286.98 | ||
4 | $1,800.00 | $ 165.74 | $ 1,634.26 | $ 6,652.72 | ||
5 | $1,800.00 | $ 133.05 | $ 1,666.95 | $ 4,985.78 | ||
6 | $1,800.00 | $ 99.72 | $ 1,700.28 | $ 3,285.49 | ||
7 | $1,800.00 | $ 65.71 | $ 1,734.29 | $ 1,551.20 | ||
8 | $1,800.00 | $ 31.02 | $ 1,768.98 | $ (217.77) | ||
Total | $14,400.00 | $1,182.23 | $13,217.77 | |||
After adjusting -$217.77 following will be the amortization table (answer) | ||||||
Payment Number | Amount Paid | Interest paid | Principal Repaid | Outstanding Principal | ||
0 | $ 13,000.00 | |||||
1 | $1,800.00 | $ 260.00 | $ 1,540.00 | $ 11,460.00 | ||
2 | $1,800.00 | $ 229.20 | $ 1,570.80 | $ 9,889.20 | ||
3 | $1,800.00 | $ 197.78 | $ 1,602.22 | $ 8,286.98 | ||
4 | $1,800.00 | $ 165.74 | $ 1,634.26 | $ 6,652.72 | ||
5 | $1,800.00 | $ 133.05 | $ 1,666.95 | $ 4,985.78 | ||
6 | $1,800.00 | $ 99.72 | $ 1,700.28 | $ 3,285.49 | ||
7 | $1,800.00 | $ 65.71 | $ 1,734.29 | $ 1,551.20 | ||
8 | $1,582.23 | $ 31.02 | $ 1,551.20 | $ - | ||
Total | $14,182.23 | $1,182.23 | $13,000.00 | |||
Total Paid | $14,182.23 | |||||
Interest Paid | $1,182.23 | |||||
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