Check My Work Click here to read the eBook Amortized Loans A

Check My Work Click here to read the eBook: Amortized Loans AMORTIZATION SCHEDULE a. Complete an amortization schedule for a $49,000 loan to be repaid in equal installments at the end of each of the next three years. The interest rate is 10% compounded annually. Round all answers to the nearest cent. RepaymentEnding of Principal Beginning Year Balance Payment Interest b. What percentage of the payment represents interest and what percentage represents principal for each of the three years? Round all answers to two decimal places. % Interest % Principa Year 1 Year 2: Year 3:

Solution

a.

Year

Beginning Balance

Payment

Interest

Repayment of principal

Ending balance

1

                49,000.00

$19,703.63

                  4,900.00

                14,803.63

                34,196.37

2

                34,196.37

$19,703.63

                  3,419.64

                16,283.99

                17,912.39

3

                17,912.39

$19,703.63

                  1,791.24

                17,912.39

                              -  

b.

Year

Interest

Principal

1

24.87%

75.13%

2

17.36%

82.64%

3

9.09%

90.91%

Formula for above:

Interest = Interest for year / Payment

Principal = Repayment of principal for year / Payment

Year	Beginning Balance	Payment	Interest	Repayment of principal	Ending balance
1	49,000.00	$19,703.63	4,900.00	14,803.63	34,196.37
2	34,196.37	$19,703.63	3,419.64	16,283.99	17,912.39
3	17,912.39	$19,703.63	1,791.24	17,912.39	-