Question

you borrowed 100,000 exactly 5 years ago. the loan is structured as an amortized loan. the interest rate is 6 % and you make quarterly (end of quarter) payments of 1937.06. the loan is amortized over 25 years. how much principal have you paid over the first 5 years ?

Answer 1

Please find the table of amortization schedule with formulas

We will have four quarters in a year and Every quarter interest has to the found as=opening balance*1.5% (6%/4=1.5%)

We have to find the amortization schedule for 5 years which comes of 20 periods (5*4=20)

Periods	Opening balance	Monthly payment	Interest=(Opening balance*1.5%)	Principal=monthly payment-Interest	Ending balance=Opening balance-principal
1	100000.0	1937.1	1500.0	437.1	99562.9
2	99562.9	1937.1	1493.4	443.6	99119.3
3	99119.3	1937.1	1486.8	450.3	98669.1
4	98669.1	1937.1	1480.0	457.0	98212.0
5	98212.0	1937.1	1473.2	463.9	97748.2
6	97748.2	1937.1	1466.2	470.8	97277.3
7	97277.3	1937.1	1459.2	477.9	96799.4
8	96799.4	1937.1	1452.0	485.1	96314.4
9	96314.4	1937.1	1444.7	492.3	95822.0
10	95822.0	1937.1	1437.3	499.7	95322.3
11	95322.3	1937.1	1429.8	507.2	94815.1
12	94815.1	1937.1	1422.2	514.8	94300.2
13	94300.2	1937.1	1414.5	522.6	93777.7
14	93777.7	1937.1	1406.7	530.4	93247.3
15	93247.3	1937.1	1398.7	538.3	92709.0
16	92709.0	1937.1	1390.6	546.4	92162.5
17	92162.5	1937.1	1382.4	554.6	91607.9
18	91607.9	1937.1	1374.1	562.9	91045.0
19	91045.0	1937.1	1365.7	571.4	90473.6
20	90473.6	1937.1	1357.1	580.0	89893.6
total				10106.4

The total principal payments=10,106.4