Question

Given the annual interest rate and a line of an amortization schedule for that loan, complete the next line of the schedule. Assume that payments are made monthly. Annual Interest Rate Payment $524.49 Interest Paid $43.29 Paid on Principal $481.20 Balance $8,040.03 out the amortization schedule below. Payment Balance Annual interest Rate 6.1% Interest Paid $43.29 Paid on Principal $481.20 $8.040.03 $524.49 $ 524.49 Round to the nearest cent as needed.

Answer 1

In case of amortized loan the monthly payment would be equal and consists of interest amount and principal amount.

The completed amortization table is shown below

The interest would be paid monthly Monthly interest rate 0.51% 6.1%/12 The amortization table is shown below Annual interest rate Payment Interest paid Paid on principal 6.10% $524.49 $43.29 $481.20 $524.49 $40.87 $483.62 (8040.03*0.51%) (524.49-40.87) Balance $8.040.03 $7,556.41 (8040.03-483.62) Interest paid is calculated as monthly interest rate multiplied by beginning balance Principal paid monthly payment less interest paid Balance is beginning balance less principal paid