Question

The debt is amortized by equal payments made at the end of each payment interval. Compute (a) the size of the periodic payments; (b) the outstanding principal at the time indicated; (c) the interest paid by the payment following the time indicated for finding the outstanding principal; and (d) the principal repaid by the same payment as in part c.

Debt Principal	Repayment Period	Payment Interval	Interest Rate	Conversion Period	Outstanding Principal After:
$16,000.00	8 years	6 months	3 %	quarterly	7th payment

Answer 1

1.
=PMT((1+3%/4)^(4/2)-1,2*8,-16000)=1132.75482983456
2.
=FV((1+3%/4)^(4/2)-1,7,1132.75482983456,-16000)=9467.84477822608
3.
=9467.84477822608*((1+3%/4)^(4/2)-1)=142.550237942169
4.
=1132.75482983456-142.550237942169=990.204591892389

Payment	Loan beginning balance	Payment	Interest payment	Principal payment	Loan ending balance
1	16000	$1,132.75	$240.90	$891.85	$15,108.15
2	$15,108.15	$1,132.75	$227.47	$905.28	$14,202.86
3	$14,202.86	$1,132.75	$213.84	$918.91	$13,283.95
4	$13,283.95	$1,132.75	$200.01	$932.75	$12,351.20
5	$12,351.20	$1,132.75	$185.96	$946.79	$11,404.41
6	$11,404.41	$1,132.75	$171.71	$961.05	$10,443.36
7	$10,443.36	$1,132.75	$157.24	$975.52	$9,467.84
8	$9,467.84	$1,132.75	$142.55	$990.20	$8,477.64
9	$8,477.64	$1,132.75	$127.64	$1,005.11	$7,472.53
10	$7,472.53	$1,132.75	$112.51	$1,020.25	$6,452.28
11	$6,452.28	$1,132.75	$97.15	$1,035.61	$5,416.67
12	$5,416.67	$1,132.75	$81.55	$1,051.20	$4,365.47
13	$4,365.47	$1,132.75	$65.73	$1,067.03	$3,298.45
14	$3,298.45	$1,132.75	$49.66	$1,083.09	$2,215.35
15	$2,215.35	$1,132.75	$33.35	$1,099.40	$1,115.95
16	$1,115.95	$1,132.75	$16.80	$1,115.95	($0.00)