In: Accounting
Assume you are to borrow money, the loan amount, at an annual interest rate to be paid in equal installments each period.
Installment Loan Schedule |
|
|||||
Loan Amount | $25,000 | |||||
Annual Interest Rate | 9.90% | |||||
Periods per year | 12 | |||||
Years to payback | 5 | |||||
See Table B.3 in book. | ||||||
Factor | 47.17454194 | FACTOR = [1 - (1 / ((1 + R)^n)]/ R | ||||
Equal Payments | $529.95 | let R = period interest rate | ||||
let n = number of periods to payback loan | ||||||
Number of periods: | 60 | |||||
Reduction | ||||||
Period | Payment | Interest Exp | in Principal | Principal | ||
Borrowed money | $25,000.00 | |||||
Period |
Payment (A) [Installment amount = $529.95] |
Interest Exp [B = (D x 9.9%)x1/12] |
Reduction in Principal [C= A – B] |
Borrowed money Principal [D = D – C] |
$ 25,000.00 |
||||
1 |
$ 529.95 |
$ 206.25 |
$ 323.70 |
$ 24,676.30 |
2 |
$ 529.95 |
$ 203.58 |
$ 326.37 |
$ 24,349.93 |
3 |
$ 529.95 |
$ 200.89 |
$ 329.06 |
$ 24,020.87 |
4 |
$ 529.95 |
$ 198.17 |
$ 331.78 |
$ 23,689.09 |
5 |
$ 529.95 |
$ 195.43 |
$ 334.52 |
$ 23,354.57 |
6 |
$ 529.95 |
$ 192.68 |
$ 337.27 |
$ 23,017.30 |
7 |
$ 529.95 |
$ 189.89 |
$ 340.06 |
$ 22,677.24 |
8 |
$ 529.95 |
$ 187.09 |
$ 342.86 |
$ 22,334.38 |
9 |
$ 529.95 |
$ 184.26 |
$ 345.69 |
$ 21,988.69 |
10 |
$ 529.95 |
$ 181.41 |
$ 348.54 |
$ 21,640.14 |
11 |
$ 529.95 |
$ 178.53 |
$ 351.42 |
$ 21,288.73 |
12 |
$ 529.95 |
$ 175.63 |
$ 354.32 |
$ 20,934.41 |
13 |
$ 529.95 |
$ 172.71 |
$ 357.24 |
$ 20,577.17 |
14 |
$ 529.95 |
$ 169.76 |
$ 360.19 |
$ 20,216.98 |
15 |
$ 529.95 |
$ 166.79 |
$ 363.16 |
$ 19,853.82 |
16 |
$ 529.95 |
$ 163.79 |
$ 366.16 |
$ 19,487.66 |
17 |
$ 529.95 |
$ 160.77 |
$ 369.18 |
$ 19,118.48 |
18 |
$ 529.95 |
$ 157.73 |
$ 372.22 |
$ 18,746.26 |
19 |
$ 529.95 |
$ 154.66 |
$ 375.29 |
$ 18,370.97 |
20 |
$ 529.95 |
$ 151.56 |
$ 378.39 |
$ 17,992.58 |
21 |
$ 529.95 |
$ 148.44 |
$ 381.51 |
$ 17,611.07 |
22 |
$ 529.95 |
$ 145.29 |
$ 384.66 |
$ 17,226.41 |
23 |
$ 529.95 |
$ 142.12 |
$ 387.83 |
$ 16,838.58 |
24 |
$ 529.95 |
$ 138.92 |
$ 391.03 |
$ 16,447.55 |
25 |
$ 529.95 |
$ 135.69 |
$ 394.26 |
$ 16,053.29 |
26 |
$ 529.95 |
$ 132.44 |
$ 397.51 |
$ 15,655.78 |
27 |
$ 529.95 |
$ 129.16 |
$ 400.79 |
$ 15,254.99 |
28 |
$ 529.95 |
$ 125.85 |
$ 404.10 |
$ 14,850.89 |
29 |
$ 529.95 |
$ 122.52 |
$ 407.43 |
$ 14,443.46 |
30 |
$ 529.95 |
$ 119.16 |
$ 410.79 |
$ 14,032.67 |
31 |
$ 529.95 |
$ 115.77 |
$ 414.18 |
$ 13,618.49 |
32 |
$ 529.95 |
$ 112.35 |
$ 417.60 |
$ 13,200.89 |
33 |
$ 529.95 |
$ 108.91 |
$ 421.04 |
$ 12,779.85 |
34 |
$ 529.95 |
$ 105.43 |
$ 424.52 |
$ 12,355.33 |
35 |
$ 529.95 |
$ 101.93 |
$ 428.02 |
$ 11,927.31 |
36 |
$ 529.95 |
$ 98.40 |
$ 431.55 |
$ 11,495.76 |
37 |
$ 529.95 |
$ 94.84 |
$ 435.11 |
$ 11,060.66 |
38 |
$ 529.95 |
$ 91.25 |
$ 438.70 |
$ 10,621.96 |
39 |
$ 529.95 |
$ 87.63 |
$ 442.32 |
$ 10,179.64 |
40 |
$ 529.95 |
$ 83.98 |
$ 445.97 |
$ 9,733.67 |
41 |
$ 529.95 |
$ 80.30 |
$ 449.65 |
$ 9,284.02 |
42 |
$ 529.95 |
$ 76.59 |
$ 453.36 |
$ 8,830.66 |
43 |
$ 529.95 |
$ 72.85 |
$ 457.10 |
$ 8,373.57 |
44 |
$ 529.95 |
$ 69.08 |
$ 460.87 |
$ 7,912.70 |
45 |
$ 529.95 |
$ 65.28 |
$ 464.67 |
$ 7,448.03 |
46 |
$ 529.95 |
$ 61.45 |
$ 468.50 |
$ 6,979.53 |
47 |
$ 529.95 |
$ 57.58 |
$ 472.37 |
$ 6,507.16 |
48 |
$ 529.95 |
$ 53.68 |
$ 476.27 |
$ 6,030.89 |
49 |
$ 529.95 |
$ 49.75 |
$ 480.20 |
$ 5,550.70 |
50 |
$ 529.95 |
$ 45.79 |
$ 484.16 |
$ 5,066.54 |
51 |
$ 529.95 |
$ 41.80 |
$ 488.15 |
$ 4,578.39 |
52 |
$ 529.95 |
$ 37.77 |
$ 492.18 |
$ 4,086.21 |
53 |
$ 529.95 |
$ 33.71 |
$ 496.24 |
$ 3,589.97 |
54 |
$ 529.95 |
$ 29.62 |
$ 500.33 |
$ 3,089.64 |
55 |
$ 529.95 |
$ 25.49 |
$ 504.46 |
$ 2,585.18 |
56 |
$ 529.95 |
$ 21.33 |
$ 508.62 |
$ 2,076.55 |
57 |
$ 529.95 |
$ 17.13 |
$ 512.82 |
$ 1,563.74 |
58 |
$ 529.95 |
$ 12.90 |
$ 517.05 |
$ 1,046.69 |
59 |
$ 529.95 |
$ 8.64 |
$ 521.31 |
$ 525.37 |
60 |
$ 529.95 |
$ 4.33 |
$ 525.62 |
$ (0.24) |