Prepare an amortization sxhedule for a three-year loan of $12,000. The interest rate is 7% per...

Prepare an amortization sxhedule for a three-year loan of $12,000. The interest rate is 7% per year, and the loan calls for equal annual end-of-year payments.

Expert Solution

Amortization schedule
Year	Payment	Interest portion	Principal portion	Loan balance
0	$ -	$ -	$ -	$ 12,000.00
1	$ 4,572.62	$ 840.00	$ 3,732.62	$ 8,267.38
2	$ 4,572.62	$ 578.72	$ 3,993.90	$ 4,273.48
3	$ 4,572.62	$ 299.14	$ 4,273.48	$ -

Excel formulas:

jeff jeffy answered 2 years ago

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