You have borrowed $70,000 to buy a sports car. You plan to make monthly payments over...

You have borrowed $70,000 to buy a sports car. You plan to make monthly payments over a 15-year period. The bank has offered you a 9% interest rate compounded monthly. create an amortization schedule for the first two months of the loan. you can just write the value infront of the following items: payment,interest,principal and ending value for 2 years

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Expert Solution

Monthly loan payment is calculated using PMT function in Excel :

rate = 9% / 12 (converting annual rate into monthly rate)

nper = 15*12 (15 year loan with 12 monthly payments each year)

pv = 70000 (loan amount)

Interest in any month = principal outstanding at beginning of month * 9% / 12

Principal portion of monthly payment = monthly payment minus interest portion of payment

principal outstanding at end of month = principal outstanding at beginning of month minus principal portion of monthly payment

jeff jeffy answered 1 year ago

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