In: Finance
a) Calculate the monthly installments
b) Build an amortization table for the life of loan. For each payment, show the beginning loan balance, interest payment, principal payment, and ending balance.
Given,
Loan amount = $ 350000
Down payment = $ 70000
Loan period = 30 years
rate of interest (r) = 4.75% or 0.0475
No. of payments (n) = 30 years x 12 months = 360
Principal amount = 350000 - 70000 = 280000
b) Build an amortization table for the life of loan. For each payment, show the beginning loan balance, interest payment, principal payment, and ending balance.
The last closing balance of 2.02 is due to rounding off the calculations.
Monthly installment calculated in the excel is different from manual calculation. Because I have rounded off the calculations in manual calculation.