Question

Loan 4: Set up your own amortization schedule $140,000 is borrower at 10.25% annual interest over 10 years. Questions What is the total interest costs over the life of the loan? How many months will the borrower make payments? What is the monthly payment?

Answer 1

Amortization table:(First 10 and last 10 months due to limitation of characters)

Loan Amount	Interest Rate	Term in Years	Monthly Payment
$140,000.00	10.25%	10	$1,869.55
Month	StartingBalance	Interest	Principal	EndingBalance	TotalInterest
1	$140,000.00	$1,195.83	$673.71	$139,326.29	$1,195.83
2	$139,326.29	$1,190.08	$679.47	$138,646.82	$2,385.91
3	$138,646.82	$1,184.27	$685.27	$137,961.55	$3,570.19
4	$137,961.55	$1,178.42	$691.12	$137,270.42	$4,748.61
5	$137,270.42	$1,172.52	$697.03	$136,573.40	$5,921.13
6	$136,573.40	$1,166.56	$702.98	$135,870.42	$7,087.69
7	$135,870.42	$1,160.56	$708.99	$135,161.43	$8,248.25
8	$135,161.43	$1,154.50	$715.04	$134,446.39	$9,402.75
9	$134,446.39	$1,148.40	$721.15	$133,725.24	$10,551.15
10	$133,725.24	$1,142.24	$727.31	$132,997.93	$11,693.39

111	$17,846.36	$152.44	$1,717.11	$16,129.25	$83,648.86
112	$16,129.25	$137.77	$1,731.78	$14,397.47	$83,786.63
113	$14,397.47	$122.98	$1,746.57	$12,650.91	$83,909.61
114	$12,650.91	$108.06	$1,761.49	$10,889.42	$84,017.67
115	$10,889.42	$93.01	$1,776.53	$9,112.89	$84,110.68
116	$9,112.89	$77.84	$1,791.71	$7,321.18	$84,188.52
117	$7,321.18	$62.54	$1,807.01	$5,514.17	$84,251.06
118	$5,514.17	$47.10	$1,822.45	$3,691.72	$84,298.16
119	$3,691.72	$31.53	$1,838.01	$1,853.71	$84,329.69
120	$1,853.71	$15.83	$1,853.71	$0.00	$84,345.52

a: Total interest = $84,345,52

b: Number of months =10years*12 = 120

C: Monthly payment = $1869.55

WORKINGS