Question

6 8 To help with the startup costs of his new yoga studio, Manuel is taking out a $62,000 amortized loan for 10 years at 7.4% annual interest. His monthly payment for this loan is $732.72 Fill in all the blanks in the amortization schedule for the loan. Assume that each month isof a year. Round your 12 answers to the nearest cent. Payment number Principal Interest New loan balance payment payment $488.34 $39,140.67 $244.38 56

Answer 1

for first month, interest is

LRN 100

L=62000

R=7.4%

N=1/12  month

= 62000 . 7.4 100

158500 I 100

382.33

.

principal is

$P=PMT-I$

P732,72-382.33

P350.39

.

new loan balance is

$L'=L-P$

L, 62000-350.39

L' 61649.61

.

.

find interest of second month

L'RN 100

L=61649.61

R=7.4%

N=1/12  month

$I=\frac{61649.61\cdot 7.4\cdot \frac{1}{12}}{100}$

$I= \frac{456207.114\cdot \frac{1}{12}}{100}$

$I= \frac{38017.2595}{100}$

${\color{Red} I= 380.17}$

.

.

principal is

$P'=PMT-I$

$P'=732.72-380.17$

${\color{Red} P'=352.55}$

..

.

new loan balance is

$L''=L'-P$

L"-61297.07

.

.

.

.

.

for 55th payment loan balance is 39140.67

L=39140.67

R=7.4%

N=1/12  month

$I=\frac{39140.67\cdot 7.4\cdot \frac{1}{12}}{100}$

$I= \frac{289640.958\cdot \frac{1}{12}}{100}$

$I= \frac{24136.7465}{100}$

${\color{Red} I= 241.37}$

.

.

principal is

$P=PMT-I$

$P=732.72-241.37$

${\color{Red} P= 491.35}$

.

new loan balance is

$L'=L-P$

$L'=39140.67-491.35$

${\color{Red} L'= 38649.33}$

complete the table

number	interest	principal	loan balance
1	382.33	350.39	61649.61
2	380.17	352.55	61297.07
55	244.38	488.34	39140.67
56	241.37	491.35	38649.33