In: Finance
The following loan is fully amortizing. The loan is for $13,000 at 9% interest to be repaid over three (3) years. Amortize this loan on a monthly basis. Calculate the interest portion of the fourth (4th) payment considering that an additional payment of $2,000 was made with the second payment.
First calculate monthly payment:
Using financial calculator BA II Plus - Input details: |
# |
I/Y = Rate = 9/12 = |
0.750000 |
FV = Future value = |
$0 |
N = Total payment term = 12 x 3 Years = |
36 |
PV = Present value of loan = |
-$13,000 |
CPT > PMT = Monthly Payment = |
$413.40 |
Amortization schedule:
Year |
Beginning Balance |
Payment |
Interest |
Repayment of principal |
Additional payment |
Ending balance |
Y |
OP |
PMT |
I = OP x 9%/12 |
AM = PMT - I |
AP |
CB = OP-AM-AP |
1 |
$13,000.00 |
$413.40 |
97.50 |
$315.90 |
$12,684.10 |
|
2 |
12,684.10 |
$413.40 |
95.13 |
$318.27 |
$2,000.00 |
$10,365.84 |
3 |
10,365.84 |
$413.40 |
77.74 |
$335.65 |
$10,030.18 |
|
4 |
10,030.18 |
$413.40 |
75.23 |
338.17 |
$9,692.01 |
Interest portion of the fourth payment = $75.23