Question

A company borrowed $14,000 paying interest at 6% compounded annually. If the loan is repaid by payments of $2100 made at the end of each year, construct a partial amortization schedule showing the last three payments, the total paid, and the total interest paid. Complete the table below for the last three payments. (Do not round until the final answer. Then round to the nearest cent as needed.) Payment Outstanding Number Amount Paid Interest Paid Principal Repaid Principal $2100 $2100 7 GO 9 $0 Total Paids (Do not round until the final answer. Then round to the nearest cont as needed.) Interost Paid - 50 (Do not round until the final answer. Then round to the nearest cent as needed.)

Answer 1

Amount $ 14000, Interest 601 compounded anually. Compounded principal after one year :- x 6 = 14000 + 14004 14840 lop Hence among $ 2100, I wherest paid = $840 Principal Repaid = 2100 -8 40 = 1260 outstanding principal : 14000 – 1260 $ 12740 - Payment Amount Paid Interest Paid Principal | Outstanding Repaid Principal Ncember 1 840 1260 2100 $ 12740 2 2100 764040 $ 114044-4 1335.6 3 2100 684.26 14 15.73 $ 9988.26 2100 599.30 1500-7 $ 84 87.56 4 5 2100 509.25 1590.75 $ 6896-81 6 2100 413.81 1686.19 $ 5210.62 7 2100 312.684 1787-36 $ 3423.26 8 2100 205.40 1581097 $ 1841.04 q 1951: 50 110.46 1841.04 $0 Total Paid :- $ (8x 2100 + p951.50) = $ 18751-50 Interest paid;- $ (18751-50 14000) = $ 4759150