Problem 656 Amortization with Equal Principal Payments LO3 P

Problem 6-56 Amortization with Equal Principal Payments [LO3] Prepare an amortization schedule for a five-year loan of $66,000. Assume the loan agreement calls for a principal reduction of $13,200 every year. The interest rate is 8 percent per year. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g. 32.16. Leave no cells blank be certain to enter \"0\" wherever required.) Beginning Balance Total Payment Interest Payment Principal Payment Ending Balance eaf How much total interest is paid over the life of the loan? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) Total interest paid

Solution

total interest paid = 15,840.00

Year	Beg Balance	Total Pmt	Interest	Principal Paid	End Balance
1	66,000	18,480.00	5,280.00	13,200.00	52,800.00
2	52,800	17,424.00	4,224.00	13,200.00	39,600.00
3	39,600	16,368.00	3,168.00	13,200.00	26,400.00
4	26,400	15,312.00	2,112.00	13,200.00	13,200.00
5	13,200	14,256.00	1,056.00	13,200.00	0.00