Question

The following table shows a portion of a four-year amortization schedule.
A 4-year amortization schedule. The loan amount or principal is 19,900 dollars. At 25 months, the balance of the loan is 10,356 dollars and 3 cents.
After twenty-five payments, how much of the principal has been paid off?
a.
$2,669.28
b.
$10,353.25
c.
$9,543.97
d.
$12,213.25

Answer 1

Principal paid = original loan − balance after 25 payments = 19,900.00 − 10,356.03 = 9,543.97.

Answer: (c) $9,543.97.