Question
In: Finance
What is a loan amortization schedule, and what are some ways these schedules are used?
What is a loan amortization schedule, and what are some ways
these schedules are used?
Solutions
Expert Solution
Loan Amortization Schedule:
A Loan Amortization Schedule is a table showing the periodic loan payments. It illustrates how much Interest and how much Principal is paid on each installment. The periodic payment will be same but the amount of interest paid will be higher in the beginning of the loan repayment and lower towards the end. checkout the following table schedule for better understanding.
Following is Loan Amortization Schedule, which has loan amount of $1,000,000(principal) and interest rate of 8.4% which has to be paid in 5 years equal monthly installments.
From the above table, we can see that EMI is same but the interest payment is higher ($77,630) in the beginning of the repayment, but lower ($10,820) at the end.
By using an amortization table you can get a good picture of the monthly payments, how long it will take to pay off the loan, and the total cost of borrowing etc.
jeff jeffy answered 4 months agoRelated Solutions
What is a loan amortization schedule, and what are some ways these schedules are used?
What is a loan amortization schedule, and what are some ways
these schedules are used?
AMORTIZATION SCHEDULE a. Complete an amortization schedule for a $25,000 loan to be repaid in equal...
AMORTIZATION SCHEDULE
a. Complete an amortization schedule for a $25,000 loan to be
repaid in equal installments at the end of each of the next three
years. The interest rate is 8% compounded annually. Round all
answers to the nearest cent.
Beginning
Repayment
Ending
Year
Balance
Payment
Interest
of Principal
Balance
1
$
$
$
$
$
2
3
b. What percentage of the payment represents interest and what
percentage represents principal for each of the three years? Round
all...
Amortization schedule Set up an amortization schedule for a $36,000 loan to be repaid in equal...
Amortization schedule
Set up an amortization schedule for a $36,000 loan to be repaid
in equal installments at the end of each of the next 3 years. The
interest rate is 6% compounded annually. Round all answers to the
nearest cent.
Beginning
Remaining
Year
Balance
Payment
Balance
1
$
$
$
2
$
$
$
3
$
$
$
What percentage of the payment represents interest and what
percentage represents principal for each of the 3 years? Round all
answers...
Amortization Schedules This project requires you to create an amortization schedule for two types of loans,...
Amortization Schedules
This project requires you to create an amortization schedule for
two types of loans, a fully amortizing
constant payment mortgage (CPM) loan and a constant amortizing
(CAM) loan. In your report, compare
the amortization schedule of the CPM and CAM loans (How are they
similar? How are they different?
Which would you prefer and why?)
Part 1: Monthly Payment
Consider a $10,000 loan made at a 12 percent annual (nominal)
rate of interest for 3 years.
A) Calculate...
Finance- Amortization Schedule Create the amortization schedule for a loan of $5,000, paid monthly over two...
Finance-
Amortization Schedule Create the amortization schedule for a
loan of $5,000, paid monthly over two years using an 8 percent
APR.
Problem 5-50 Amortization Schedule (LG9) Create the amortization schedule for a loan of $4,300, paid monthly...
Problem 5-50 Amortization Schedule (LG9)
Create the amortization schedule for a loan of $4,300, paid
monthly over two years using an 9 percent APR. (Round your
answers to 2 decimal places.)
Month Beginning
Balance Total
Payment Interest
Paid Principal
Paid Ending
Balance
1
2
3
4
5
6
7 ...
Problem 5-49 Amortization Schedule (LG9) Create the amortization schedule for a loan of $14,000, paid monthly...
Problem 5-49 Amortization Schedule (LG9)
Create the amortization schedule for a loan of $14,000, paid
monthly over three years using a 9 percent APR. (Round your
answers to 2 decimal places.)
Month
Beginning
Balance
Total
Payment
Interest
Paid
Principal
Paid
Ending
Balance
1
2
3
4
5
6
7...
Create a loan amortization schedule in excell for a $27,000 car loan that will be repaid...
Create a loan amortization schedule in excell for a $27,000 car
loan that will be repaid over 48 months at an
annual interest rate of 6%.
What is your monthly payment? _$_
What is the total dollar amount of payments made over the life
of this loan? $____
What is the total dollar amount of interest paid over the life
of this loan? $___________
How many months will it take to pay off the loan if you pay an
extra...
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.
1A) Construct a loan amortization schedule for a 15 year, 7.75% loan of $10,000,000. The loan...
1A) Construct a loan amortization schedule for a 15 year, 7.75%
loan of $10,000,000. The loan requires equal, end-of-year paymens,
and interest compounded monthly.
b) what is the total amount of interest paid over the life of
the loan?
c) Assume that there is a balloon payment requirment after 10
years. What is the balloon payment in section a?
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