Homework SourseFind the amortization table for a 13000 loan amortized in fi
Find the amortization table for a $13,000 loan amortized in five annual payments if the interest rate is 6.5% per year compounded annually. (Round your answers to the nearest cent.)
| End of Period | Payment | Payment Toward Interest | Payment Toward Principal | Outstanding Principal |
| 0 | 13000 | |||
| 1 | ||||
| 2 | ||||
| 3 | ||||
| 4 | ||||
| 5 |
Solution
Loan amount=$13,000
Installment Amount=Loan amount/PVAF for 5 years@6.5%=$13,000/4.1557=$3,128
| PVAF for 5 years @6.5% | |
| Year | PV@6.5% |
| 1 | 0.9390 |
| 2 | 0.8817 |
| 3 | 0.8278 |
| 4 | 0.7773 |
| 5 | 0.7299 |
| 4.1557 |
