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Loan Amortization (Excel download)

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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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posted:5/18/2012
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