Type your question here Prepare an amortization schedule for a five-year loan of

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Prepare an amortization schedule for a five-year loan of $58,000. The interest rate is 8 percent per year, and the loan calls for equal annual payments. (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

How much interest is paid in the third year? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

The interest rate is 8 percent per year, and the loan calls for equal annual payments. How much total interest is paid over the life of the loan? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

Year Beginning
Balance Total
Payment Interest
Payment Principal
Payment Ending
Balance 1 $ $ $ $ $ 2 3 4 5

Explanation / Answer

Interest Rate = 8%

Principal amount = 58000

Instalment amount = 58000/PVIFA(8%,5)

= 14526.47436

Interest Paid in Third year = 2994.890666

Interest paid over the life of the loan = 14632.37182

Year Beginning Balance Total Payment Interest Payment Principal Payment End Balance 1 58000 14526.47436 4640 9886.474365 48113.52564 2 48113.52564 14526.47436 3849.082051 10677.39231 37436.13332 3 37436.13332 14526.47436 2994.890666 11531.5837 25904.54962 4 25904.54962 14526.47436 2072.36397 12454.1104 13450.43923 5 13450.43923 14526.47436 1076.035138 13450.43923 0

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