Question

On January 1, 2018, Gundy Enterprises purchases an office for $294,000, paying $54,000 down and borrowing the remaining $240,000, signing a 7%, 10-year mortgage. Installment payments of $2,786.60 are due at the end of each month, with the first payment due on January 31, 2018. Complete the first three rows of anamortization schedule.

Answer 1

Amortization Schedule -

Month	Principal Outstanding	Instalment	Interest	Balance
1	240000	$2,786.60	1400	$2,38,613.40
2	$2,38,613.40	$2,786.60	1391.911	$2,37,218.70
3	$2,37,218.70	$2,786.60	1383.776	$2,35,815.88
4	$2,35,815.88	$2,786.60	1375.593	$2,34,404.87
5	$2,34,404.87	$2,786.60	1367.362	$2,32,985.62
	Loan Amount	240000
	Loan terms	10
	Payment Years	12
	Interest	7%
	Monthly EMI	$2,786.60
	Formula	=PMT(0.07/12,120,-240000,)
		PMT(rate, nper, pv, [fv], [type])
	Terms -
	Nper The total number of payments for the loan.
	Pv The present value, or the total amount that a series of future payments is worth now; also known as the principal.
	Fv  Optional. The future value, or a cash balance you want to attain after the last payment is made. If fv is omitted, it is assumed to be 0 (zero), that is, the future value of a loan is 0.
	Type  Optional. The number 0 (zero) or 1 and indicates when payments are due.