Question
In: Finance
Watkins Technology is purchasing computer software at a cost of $23,000. They are putting a down...
Watkins Technology is purchasing computer software at a cost of $23,000. They are putting a down payment of $3,000 and will borrow the remainder. They will amortize the loan for the software in equal 48 monthly installments at an interest rate of 14%. Prepare an amortization schedule for the first two payments. SHOW ALL WORK!
|
Payment Number |
Amount of Payment |
Interest for Period |
Portion to Principal |
Principal Balance at End of Period |
|
0 |
||||
|
1 |
||||
|
2 |
Solutions
Expert Solution
| Loan amount | $20,000 | |||
| Loan term (in years) | 4 | |||
| Interest rate | 14.00% | |||
| Payment frequency | 12.00 | |||
| Monthly Loan payment | $546.53 | |||
| Payment number | Amount of payment | Interest for period | Portion to principal | Principal balance at end of period |
| 0 | $20,000 | |||
| 1 | $546.53 | $233.33 | $313.20 | $19,686.80 |
| 2 | $546.53 | $229.68 | $316.85 | $19,369.95 |
| Total | $1,093.06 | $463.01 | $630.05 |
Calculations and formulas
jeff jeffy answered 2 years agoRelated Solutions
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