Prepare an amortization schedule for a three-year loan of $24,000.

Prepare an amortization schedule for a three-year loan of $24,000. The interest rate is 16 percent per year, and the loan calls for equal principal payments.

Expert Solution

Using excel sheet to calculate

Years	Beginning Balance	PMT =PMT(16%,3,-24000)	Interest part of PMT(=16%*Beginning Balance)	Principal part of PMT= PMT-Interest	Ending Balance
1.00	24000.00	10686.19	3840.00	6846.19	17153.81
2.00	17153.81	10686.19	2744.61	7941.58	9212.23
3.00	9212.23	10686.19	1473.96	9212.23	0.00

jeff jeffy answered 2 years ago

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