Use the amortization table to determine how much of the 9th payment is used to r
ID: 3172189 • Letter: U
Question
Use the amortization table to determine how much of the 9th payment is used to reduce the debt.
Amortization Table
Payment Number Amount of Payment Interest for Period Portion to Principal Principal at End of Period
0 - - - $5000.00
1 $430.33 $25.00 $405.33 $4594.67
2 $430.33 $22.97 $407.36 $4187.31
3 $430.33 $20.94 $409.39 $3777.92
4 $430.33 $18.89 $411.44 $3366.48
5 $430.33 $16.83 $413.50 $2952.98
6 $430.33 $14.76 $415.57 $2537.41
7 $430.33 $12.69 $417.64 $2119.77
8 $430.33 $10.60 $419.73 $1700.04
9 $430.33 $8.50 $421.83 $1278.21
10 $430.33 $6.39 $423.94 $854.27
11 $430.33 $4.27 $426.06 $428.21
12 $430.35 $2.14 $428.21 $0.00
Explanation / Answer
The portion to principal column can tell what portion is used to pay the debt and what portion is the interest.
As we can see that in 9th payment, portion to principal is $421.83. So, out of total paid $430.33 in 9th payment,
$421.83 is used to reduce the debt and $8.50 is the interest component.
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