Question

The following table shows the first segment of a five-year amortization schedule.
A 5-year amortization schedule. The amount of interest paid for months 1 through 12 are: 99.03, 97.73, 96.42, 95.10, 93.78, 92.44, 91.09, 89.73, 88.36, 86.98, 85.58, 84.18.
After one year of payments, how much has been paid to interest?
a.
$1,100.42
b.
$1,010.16
c.
$1,188.34
d.
$1,241.18

Answer 1

Add the 12 monthly interest amounts:
99.03 + 97.73 + 96.42 + 95.10 + 93.78 + 92.44 + 91.09 + 89.73 + 88.36 + 86.98 + 85.58 + 84.18 = 1,100.42

Answer: a. $1,100.42