The loan term is 15 years, the payments are made monthly, the loan amount is $3,000,000...

The loan term is 15 years, the payments are made monthly, the loan amount is $3,000,000 and the interest rate is 8.25% APR.

A. Create an amortization schedule for the following loan.

B. What are the totals over the loan term for the interest? Principal? Total payments?

C. What is the total principal payment during the 4^th year (i.e. year 4 only!) of the loan?

Expert Solution

a)

	Beginning Balance	Interest	Principal	Ending Balance
1	$3,000,000.00	$20,625.00	$8,479.21	$2,991,520.79
2	$2,991,520.79	$20,566.71	$8,537.50	$2,982,983.28
3	$2,982,983.28	$20,508.01	$8,596.20	$2,974,387.08
4	$2,974,387.08	$20,448.91	$8,655.30	$2,965,731.78
5	$2,965,731.78	$20,389.41	$8,714.80	$2,957,016.98
6	$2,957,016.98	$20,329.49	$8,774.72	$2,948,242.26
7	$2,948,242.26	$20,269.17	$8,835.04	$2,939,407.21
8	$2,939,407.21	$20,208.42	$8,895.79	$2,930,511.43
9	$2,930,511.43	$20,147.27	$8,956.94	$2,921,554.48
10	$2,921,554.48	$20,085.69	$9,018.52	$2,912,535.96
11	$2,912,535.96	$20,023.68	$9,080.53	$2,903,455.43
12	$2,903,455.43	$19,961.26	$9,142.95	$2,894,312.48
year 1 end
13	$2,894,312.48	$19,898.40	$9,205.81	$2,885,106.67
14	$2,885,106.67	$19,835.11	$9,269.10	$2,875,837.56
15	$2,875,837.56	$19,771.38	$9,332.83	$2,866,504.74
16	$2,866,504.74	$19,707.22	$9,396.99	$2,857,107.75
17	$2,857,107.75	$19,642.62	$9,461.59	$2,847,646.15
18	$2,847,646.15	$19,577.57	$9,526.64	$2,838,119.51
19	$2,838,119.51	$19,512.07	$9,592.14	$2,828,527.37
20	$2,828,527.37	$19,446.13	$9,658.08	$2,818,869.28
21	$2,818,869.28	$19,379.73	$9,724.48	$2,809,144.80
22	$2,809,144.80	$19,312.87	$9,791.34	$2,799,353.46
23	$2,799,353.46	$19,245.56	$9,858.65	$2,789,494.80
24	$2,789,494.80	$19,177.78	$9,926.43	$2,779,568.37
year 2 end
25	$2,779,568.37	$19,109.53	$9,994.68	$2,769,573.69
26	$2,769,573.69	$19,040.82	$10,063.39	$2,759,510.30
27	$2,759,510.30	$18,971.63	$10,132.58	$2,749,377.72
28	$2,749,377.72	$18,901.97	$10,202.24	$2,739,175.48
29	$2,739,175.48	$18,831.83	$10,272.38	$2,728,903.10
30	$2,728,903.10	$18,761.21	$10,343.00	$2,718,560.10
31	$2,718,560.10	$18,690.10	$10,414.11	$2,708,145.99
32	$2,708,145.99	$18,618.50	$10,485.71	$2,697,660.29
33	$2,697,660.29	$18,546.41	$10,557.80	$2,687,102.49
34	$2,687,102.49	$18,473.83	$10,630.38	$2,676,472.11
35	$2,676,472.11	$18,400.75	$10,703.46	$2,665,768.64
36	$2,665,768.64	$18,327.16	$10,777.05	$2,654,991.59
year 3 end
37	$2,654,991.59	$18,253.07	$10,851.14	$2,644,140.45
38	$2,644,140.45	$18,178.47	$10,925.74	$2,633,214.70
39	$2,633,214.70	$18,103.35	$11,000.86	$2,622,213.84
40	$2,622,213.84	$18,027.72	$11,076.49	$2,611,137.35
41	$2,611,137.35	$17,951.57	$11,152.64	$2,599,984.71
42	$2,599,984.71	$17,874.89	$11,229.32	$2,588,755.40
43	$2,588,755.40	$17,797.69	$11,306.52	$2,577,448.88
44	$2,577,448.88	$17,719.96	$11,384.25	$2,566,064.63
45	$2,566,064.63	$17,641.69	$11,462.52	$2,554,602.11
46	$2,554,602.11	$17,562.89	$11,541.32	$2,543,060.79
47	$2,543,060.79	$17,483.54	$11,620.67	$2,531,440.12
48	$2,531,440.12	$17,403.65	$11,700.56	$2,519,739.56
year 4 end
49	$2,519,739.56	$17,323.21	$11,781.00	$2,507,958.56
50	$2,507,958.56	$17,242.22	$11,861.99	$2,496,096.57
51	$2,496,096.57	$17,160.66	$11,943.55	$2,484,153.02
52	$2,484,153.02	$17,078.55	$12,025.66	$2,472,127.36
53	$2,472,127.36	$16,995.88	$12,108.33	$2,460,019.03
54	$2,460,019.03	$16,912.63	$12,191.58	$2,447,827.45
55	$2,447,827.45	$16,828.81	$12,275.40	$2,435,552.05
56	$2,435,552.05	$16,744.42	$12,359.79	$2,423,192.26
57	$2,423,192.26	$16,659.45	$12,444.76	$2,410,747.49
58	$2,410,747.49	$16,573.89	$12,530.32	$2,398,217.17
59	$2,398,217.17	$16,487.74	$12,616.47	$2,385,600.71
60	$2,385,600.71	$16,401.00	$12,703.21	$2,372,897.50
year 5 end
61	$2,372,897.50	$16,313.67	$12,790.54	$2,360,106.96
62	$2,360,106.96	$16,225.74	$12,878.47	$2,347,228.48
63	$2,347,228.48	$16,137.20	$12,967.01	$2,334,261.47
64	$2,334,261.47	$16,048.05	$13,056.16	$2,321,205.31
65	$2,321,205.31	$15,958.29	$13,145.92	$2,308,059.38
66	$2,308,059.38	$15,867.91	$13,236.30	$2,294,823.08
67	$2,294,823.08	$15,776.91	$13,327.30	$2,281,495.78
68	$2,281,495.78	$15,685.28	$13,418.93	$2,268,076.85
69	$2,268,076.85	$15,593.03	$13,511.18	$2,254,565.67
70	$2,254,565.67	$15,500.14	$13,604.07	$2,240,961.60
71	$2,240,961.60	$15,406.61	$13,697.60	$2,227,264.00
72	$2,227,264.00	$15,312.44	$13,791.77	$2,213,472.22
year 6 end
73	$2,213,472.22	$15,217.62	$13,886.59	$2,199,585.64
74	$2,199,585.64	$15,122.15	$13,982.06	$2,185,603.58
75	$2,185,603.58	$15,026.02	$14,078.19	$2,171,525.39
76	$2,171,525.39	$14,929.24	$14,174.97	$2,157,350.42
77	$2,157,350.42	$14,831.78	$14,272.43	$2,143,077.99
78	$2,143,077.99	$14,733.66	$14,370.55	$2,128,707.44
79	$2,128,707.44	$14,634.86	$14,469.35	$2,114,238.09
80	$2,114,238.09	$14,535.39	$14,568.82	$2,099,669.27
81	$2,099,669.27	$14,435.23	$14,668.98	$2,085,000.28
82	$2,085,000.28	$14,334.38	$14,769.83	$2,070,230.45
83	$2,070,230.45	$14,232.83	$14,871.38	$2,055,359.07
84	$2,055,359.07	$14,130.59	$14,973.62	$2,040,385.46
year 7 end
85	$2,040,385.46	$14,027.65	$15,076.56	$2,025,308.90
86	$2,025,308.90	$13,924.00	$15,180.21	$2,010,128.68
87	$2,010,128.68	$13,819.63	$15,284.58	$1,994,844.11
88	$1,994,844.11	$13,714.55	$15,389.66	$1,979,454.45
89	$1,979,454.45	$13,608.75	$15,495.46	$1,963,958.99
90	$1,963,958.99	$13,502.22	$15,601.99	$1,948,357.00
91	$1,948,357.00	$13,394.95	$15,709.26	$1,932,647.74
92	$1,932,647.74	$13,286.95	$15,817.26	$1,916,830.48
93	$1,916,830.48	$13,178.21	$15,926.00	$1,900,904.48
94	$1,900,904.48	$13,068.72	$16,035.49	$1,884,868.99
95	$1,884,868.99	$12,958.47	$16,145.74	$1,868,723.25
96	$1,868,723.25	$12,847.47	$16,256.74	$1,852,466.51
year 8 end
97	$1,852,466.51	$12,735.71	$16,368.50	$1,836,098.01
98	$1,836,098.01	$12,623.17	$16,481.04	$1,819,616.97
99	$1,819,616.97	$12,509.87	$16,594.34	$1,803,022.63
100	$1,803,022.63	$12,395.78	$16,708.43	$1,786,314.20
101	$1,786,314.20	$12,280.91	$16,823.30	$1,769,490.90
102	$1,769,490.90	$12,165.25	$16,938.96	$1,752,551.94
103	$1,752,551.94	$12,048.79	$17,055.42	$1,735,496.52
104	$1,735,496.52	$11,931.54	$17,172.67	$1,718,323.85
105	$1,718,323.85	$11,813.48	$17,290.73	$1,701,033.12
106	$1,701,033.12	$11,694.60	$17,409.61	$1,683,623.51
107	$1,683,623.51	$11,574.91	$17,529.30	$1,666,094.21
108	$1,666,094.21	$11,454.40	$17,649.81	$1,648,444.40
year 9 end
109	$1,648,444.40	$11,333.06	$17,771.15	$1,630,673.24
110	$1,630,673.24	$11,210.88	$17,893.33	$1,612,779.91
111	$1,612,779.91	$11,087.86	$18,016.35	$1,594,763.56
112	$1,594,763.56	$10,964.00	$18,140.21	$1,576,623.35
113	$1,576,623.35	$10,839.29	$18,264.92	$1,558,358.42
114	$1,558,358.42	$10,713.71	$18,390.50	$1,539,967.93
115	$1,539,967.93	$10,587.28	$18,516.93	$1,521,450.99
116	$1,521,450.99	$10,459.98	$18,644.23	$1,502,806.76
117	$1,502,806.76	$10,331.80	$18,772.41	$1,484,034.35
118	$1,484,034.35	$10,202.74	$18,901.47	$1,465,132.87
119	$1,465,132.87	$10,072.79	$19,031.42	$1,446,101.45
120	$1,446,101.45	$9,941.95	$19,162.26	$1,426,939.19
year 10 end
121	$1,426,939.19	$9,810.21	$19,294.00	$1,407,645.18
122	$1,407,645.18	$9,677.56	$19,426.65	$1,388,218.53
123	$1,388,218.53	$9,544.00	$19,560.21	$1,368,658.32
124	$1,368,658.32	$9,409.53	$19,694.68	$1,348,963.64
125	$1,348,963.64	$9,274.13	$19,830.08	$1,329,133.55
126	$1,329,133.55	$9,137.79	$19,966.42	$1,309,167.13
127	$1,309,167.13	$9,000.52	$20,103.69	$1,289,063.45
128	$1,289,063.45	$8,862.31	$20,241.90	$1,268,821.55
129	$1,268,821.55	$8,723.15	$20,381.06	$1,248,440.49
130	$1,248,440.49	$8,583.03	$20,521.18	$1,227,919.30
131	$1,227,919.30	$8,441.95	$20,662.26	$1,207,257.04
132	$1,207,257.04	$8,299.89	$20,804.32	$1,186,452.72
year 11 end
133	$1,186,452.72	$8,156.86	$20,947.35	$1,165,505.37
134	$1,165,505.37	$8,012.85	$21,091.36	$1,144,414.01
135	$1,144,414.01	$7,867.85	$21,236.36	$1,123,177.65
136	$1,123,177.65	$7,721.85	$21,382.36	$1,101,795.28
137	$1,101,795.28	$7,574.84	$21,529.37	$1,080,265.91
138	$1,080,265.91	$7,426.83	$21,677.38	$1,058,588.53
139	$1,058,588.53	$7,277.80	$21,826.41	$1,036,762.12
140	$1,036,762.12	$7,127.74	$21,976.47	$1,014,785.64
141	$1,014,785.64	$6,976.65	$22,127.56	$992,658.09
142	$992,658.09	$6,824.52	$22,279.69	$970,378.40
143	$970,378.40	$6,671.35	$22,432.86	$947,945.54
144	$947,945.54	$6,517.13	$22,587.08	$925,358.45
year 12 end
145	$925,358.45	$6,361.84	$22,742.37	$902,616.08
146	$902,616.08	$6,205.49	$22,898.72	$879,717.36
147	$879,717.36	$6,048.06	$23,056.15	$856,661.20
148	$856,661.20	$5,889.55	$23,214.66	$833,446.54
149	$833,446.54	$5,729.94	$23,374.27	$810,072.27
150	$810,072.27	$5,569.25	$23,534.96	$786,537.31
151	$786,537.31	$5,407.44	$23,696.77	$762,840.54
152	$762,840.54	$5,244.53	$23,859.68	$738,980.86
153	$738,980.86	$5,080.49	$24,023.72	$714,957.14
154	$714,957.14	$4,915.33	$24,188.88	$690,768.26
155	$690,768.26	$4,749.03	$24,355.18	$666,413.08
156	$666,413.08	$4,581.59	$24,522.62	$641,890.46
year 13 end
157	$641,890.46	$4,413.00	$24,691.21	$617,199.25
158	$617,199.25	$4,243.24	$24,860.97	$592,338.28
159	$592,338.28	$4,072.33	$25,031.88	$567,306.40
160	$567,306.40	$3,900.23	$25,203.98	$542,102.42
161	$542,102.42	$3,726.95	$25,377.26	$516,725.16
162	$516,725.16	$3,552.49	$25,551.72	$491,173.44
163	$491,173.44	$3,376.82	$25,727.39	$465,446.04
164	$465,446.04	$3,199.94	$25,904.27	$439,541.77
165	$439,541.77	$3,021.85	$26,082.36	$413,459.41
166	$413,459.41	$2,842.53	$26,261.68	$387,197.74
167	$387,197.74	$2,661.98	$26,442.23	$360,755.51
168	$360,755.51	$2,480.19	$26,624.02	$334,131.49
year 14 end
169	$334,131.49	$2,297.15	$26,807.06	$307,324.44
170	$307,324.44	$2,112.86	$26,991.35	$280,333.08
171	$280,333.08	$1,927.29	$27,176.92	$253,156.16
172	$253,156.16	$1,740.45	$27,363.76	$225,792.40
173	$225,792.40	$1,552.32	$27,551.89	$198,240.51
174	$198,240.51	$1,362.90	$27,741.31	$170,499.20
175	$170,499.20	$1,172.18	$27,932.03	$142,567.18
176	$142,567.18	$980.15	$28,124.06	$114,443.11
177	$114,443.11	$786.80	$28,317.41	$86,125.70
178	$86,125.70	$592.11	$28,512.10	$57,613.60
179	$57,613.60	$396.09	$28,708.12	$28,905.49
180	$28,905.49	$198.73	$28,905.48	$0.00
year 15 end

b)

total interest = $2,238,757.93

total payments = $5,238,757.93

total principal = $3,000,000

c)

total principal payment during fourth year = $135,252.03

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