Question

Prepare an amortization schedule for a five-year loan of $55,000. The interest rate is 8 percent per year, and the loan calls for equal annual payments. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Leave no cells blank - be certain to enter "0" wherever required.)

  

Year	Beginning Balance	Total Payment	Interest Payment	Principal Payment	Ending Balance
1	$	$	$	$	$
2
3
4
5

How much interest is paid in the third year? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

  

Interest paid

$

How much total interest is paid over the life of the loan? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

  

Total interest paid

$

Answer 1

Interest Paid in 3rd Year = $2,839.98

Total Interest Paid = $4,400.00 + $3,649.99 + $2,839.98 + $1,965.17 + $1,020.38 = $13,875.53