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```					LOAN AMORTIZATION
Exercise: Suppose you buy a used car for \$9000 and get a loan through your credit union to purchase the car. You
put \$1000 down and borrow the rest. You repay the loan over a 2 year (24 month period of time) The interest rate
charge by the credit union is 6% annually. Calculate the interest and principle payment for each month and show
the decliining balance. That is, show the loan amortization table.
Questions:
What will be the total of all payments you will make?
How much interest will you pay?

Assumptions:
Loan Amount \$ 8,000
Annual interest rate          6%
Payment     \$354.56 Use the link on my website to calculate the payment.

Beginnning
Period             Balance     Interest Paid    Principle paid   Ending Balance

1         \$    8,000.00 \$           40.00          \$314.56 \$        7,685.44

2         \$    7,685.44 \$           38.43          \$316.14 \$        7,369.30

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Totals

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