The payment amounts are all the same (except for the final payment). Interest is calculated from the remaining balance, and removed from the payment to find the Principal. The principal is then taken from the previous balance to find the new balance.

Math for Liberal Arts - Amortization Worksheet Principal: $10,200 rate: 8.1% term: 2 years pmt: $461.78 Payment Payment To To number amount interest principal Balance 0 $10,200.00 1 $461.78 IN $461.78 w $461.78 4 $461.78 $461.78 6 $461.78 $461.78 $461.78 9 $461.78 10 $461.78 11 $461.78 12 $461.78 13 $461.78 14 $461.78 15 $461.78 16 $461.78 17 $461.78 18 $461.78 19 $461.78 20 $461.78 21 $461.78 22 $461.78 23 $461.78 24 $0.00 Name: Terms: 23 payments of $461.78 & a final 24th payment of Total Interest Paid Total Amount Paid