Question

John borrows $150,000. The terms of the loan are 7.5% over the next 5 years. It is important to note that he makes annual rather than monthly payments.



Construct a loan amortization schedule that shows the 5 payments of John's loan.

Answer 1

hard to show charts on here, since columns don't line up.

First you have to find the payment, solve for x

150000 = x(1 - 1.075^-5)/.075
(I got 37 074.71 )

make a table with headings
Time -- payment --interest --- repayment -- balance
1 -- 37074.71 -- 11250 --- 25824.71 --- 124175.29
2 --- 37074.71 --9313.15 -- 27761.56 -- 96413.73
.....

(mine came out exactly to the last penny)