Prepare an amortization schedule for a threeyear loan of 630

Prepare an amortization schedule for a three-year loan of $63,000. The interest rate is 10 percent per year, and the loan agreement calls for a principal reduction of $21,000 every year. How much total interest is paid over the life of the loan? (Enter rounded answers as directed, but do not use rounded numbers in intermediate calculations. Leave no cells blank. You must enter \'0\' for the answer to grade correctly.)

  

Year

Beginning
Balance

Total
Payment

Interest
Payment

Principal
Payment

Ending
Balance

1

$  

$  

$  

$  

$  

2

  

  

  

  

  

3

  

  

  

  

  

Prepare an amortization schedule for a three-year loan of $63,000. The interest rate is 10 percent per year, and the loan agreement calls for a principal reduction of $21,000 every year. How much total interest is paid over the life of the loan? (Enter rounded answers as directed, but do not use rounded numbers in intermediate calculations. Leave no cells blank. You must enter \'0\' for the answer to grade correctly.)

Solution

Date Payment Principal Interest Total Interest Balance Nov. 2015 $2,032.83 $1,507.83 $525.00 $525.00 $61,492.17 Dec. 2015 $2,032.83 $1,520.40 $512.43 $1,037.43 $59,971.77 Jan. 2016 $2,032.83 $1,533.07 $499.76 $1,537.20 $58,438.70 Feb. 2016 $2,032.83 $1,545.84 $486.99 $2,024.19 $56,892.86 Mar. 2016 $2,032.83 $1,558.73 $474.11 $2,498.30 $55,334.13 April 2016 $2,032.83 $1,571.72 $461.12 $2,959.41 $53,762.42 May 2016 $2,032.83 $1,584.81 $448.02 $3,407.43 $52,177.60 June 2016 $2,032.83 $1,598.02 $434.81 $3,842.25 $50,579.58 July 2016 $2,032.83 $1,611.34 $421.50 $4,263.74 $48,968.25 Aug. 2016 $2,032.83 $1,624.76 $408.07 $4,671.81 $47,343.48 Sept. 2016 $2,032.83 $1,638.30 $394.53 $5,066.34 $45,705.18 Oct. 2016 $2,032.83 $1,651.96 $380.88 $5,447.22 $44,053.22 Nov. 2016 $2,032.83 $1,665.72 $367.11 $5,814.33 $42,387.50 Dec. 2016 $2,032.83 $1,679.60 $353.23 $6,167.56 $40,707.90 Jan. 2017 $2,032.83 $1,693.60 $339.23 $6,506.79 $39,014.30 Feb. 2017 $2,032.83 $1,707.71 $325.12 $6,831.91 $37,306.58 Mar. 2017 $2,032.83 $1,721.94 $310.89 $7,142.80 $35,584.64 April 2017 $2,032.83 $1,736.29 $296.54 $7,439.34 $33,848.35 May 2017 $2,032.83 $1,750.76 $282.07 $7,721.41 $32,097.58 June 2017 $2,032.83 $1,765.35 $267.48 $7,988.89 $30,332.23 July 2017 $2,032.83 $1,780.06 $252.77 $8,241.65 $28,552.17 Aug. 2017 $2,032.83 $1,794.90 $237.93 $8,479.59 $26,757.27 Sept. 2017 $2,032.83 $1,809.86 $222.98 $8,702.57 $24,947.41 Oct. 2017 $2,032.83 $1,824.94 $207.90 $8,910.46 $23,122.47 Nov. 2017 $2,032.83 $1,840.15 $192.69 $9,103.15 $21,282.33 Dec. 2017 $2,032.83 $1,855.48 $177.35 $9,280.50 $19,426.85 Jan. 2018 $2,032.83 $1,870.94 $161.89 $9,442.39 $17,555.91 Feb. 2018 $2,032.83 $1,886.53 $146.30 $9,588.69 $15,669.37 Mar. 2018 $2,032.83 $1,902.25 $130.58 $9,719.27 $13,767.12 April 2018 $2,032.83 $1,918.11 $114.73 $9,833.99 $11,849.01 May 2018 $2,032.83 $1,934.09 $98.74 $9,932.74 $9,914.92 June 2018 $2,032.83 $1,950.21 $82.62 $10,015.36 $7,964.71 July 2018 $2,032.83 $1,966.46 $66.37 $10,081.73 $5,998.25 Aug. 2018 $2,032.83 $1,982.85 $49.99 $10,131.72 $4,015.40 Sept. 2018 $2,032.83 $1,999.37 $33.46 $10,165.18 $2,016.03 Oct. 2018 $2,032.83 $2,016.03 $16.80 $10,181.98 $0.00 Year Beginning Total Interest Principal Ending Balance Payment Payment Payment Balance 1 $  63000 24394.00 $  5447.22 $  18946.78 $  44053.22 2 44053.22 24393.96 20930.73 3463.25 23122.47 3 23122.47 24393.96 $23,122.47 $1,271.52 0 Total interest 44053.2