Construct the amortization schedule for a $16,000.00 debt that is to be amortized in 12 equal semiannual payments at 5.5% interest per half-year on the unpaid balance.

Question

Construct the amortization schedule for a ​$16,000.00 debt that is to be amortized in 12 equal semiannual payments at 5.5​% interest per​ half-year on the unpaid balance.

Reiny · Accepted Answer

First we need the payment
paym(1 - 1.055^-12)/.055 = 16000
paym = 1856.47

Made up a short Excel routine, too bad the columns don't line up nicely on here
off by 4 cents due to round-off of payment.

time paym int repay bal
0 0 0 0 16000
1 1856.47 880.00 976.47 15023.53
2 1856.47 826.29 1030.18 13993.35
3 1856.47 769.63 1086.84 12906.52
4 1856.47 709.86 1146.61 11759.91
5 1856.47 646.79 1209.68 10550.23
6 1856.47 580.26 1276.21 9274.02
7 1856.47 510.07 1346.40 7927.63
8 1856.47 436.02 1420.45 6507.18
9 1856.47 357.89 1498.58 5008.60
10 1856.47 275.47 1581.00 3427.60
11 1856.47 188.52 1667.95 1759.65
12 1856.47 96.78 1759.69 -0.04

Construct the amortization schedule for a ​$16,000.00 debt that is to be amortized in 12 equal semiannual payments at 5.5​% interest per​ half-year on the unpaid balance.

Construct the amortization schedule for a $16,000.00 debt that is to be amortized in 12 equal semiannual payments at 5.5% interest per half-year on the unpaid balance.