ROBLEM $8-59$

LOAN AMORTIZATION SCHEDULE

Given:

Amount Borrowed: $$22,000$

Interest rate: $8\mathrm{.}0\%$ annually, or monthly

Term: $4$ years, or months

a$.$ Required Payments: $($hint: found using Equation $8-4$a$)$

b$.$ Loan amortization table:

Col. $1$ Col. $2$ Col. $3$ Col. $4$ Col. $5$

Col. $1$ x E$12$ Col. $2-$ Col. $3$ Col. $1-$ Col. $4$

Month

Beginning

Balance

Total

Payment

Payment of

Interest

Payment of

Principal

Ending

Balance

$1$ $$22,000\mathrm{.}00$

$2$

$3$

$4$

$5$

$6$

$7$

$8$

$9$

$10$

$11$

$12$

$13$

$14$

$15$

$16$

$17$

$18$

$19$

$20$

$21$

$22$

$23$

$24$

$25$

$26$

$27$

$28$

$29$

$30$

$31$

$32$

$33$

$34$

$35$

$36<--$ Balance at $36$th month

$37$

$38$

$39$

$40$

$41$

$42$

$43$

$44$

$45$

$46$

$47$

$48$

c$.$ Required payment to pay off loan at the end of the $36$th month:

Student instructions: