Scribd
Upload
11 views2 pages

Amortization Schedule for $5000 Loan

The document constructs an amortization schedule for a $5,000 loan with 15% annual interest repaid over 36 monthly payments. It calculates the monthly payment as $173.33. The schedule lists the outstanding principal, interest due, monthly payment, and principal reduction for each of the 36 months, showing the loan being fully repaid at the end.

Uploaded by

Alondra Gregorio
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
11 views2 pages

Amortization Schedule for $5000 Loan

The document constructs an amortization schedule for a $5,000 loan with 15% annual interest repaid over 36 monthly payments. It calculates the monthly payment as $173.33. The schedule lists the outstanding principal, interest due, monthly payment, and principal reduction for each of the 36 months, showing the loan being fully repaid at the end.

Uploaded by

Alondra Gregorio
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Alondra Jane P.

Gregorio VCM Midterm Assignment 1


1BSA4-ABM

Problem: A borrower is repaying a $5000 loan at 15% interest with monthly payments
over 3 years. Construct an Amortization Schedule.
Given: PV = $5000
i = 0.0125 (15/12)
n = 36 (3x12)
Amortization Payment = PV × [i/1-(1+i)^-n]
Amortization Payment = 5,000 × [0.0125/1-(1+0.0125)^-36
Amortization Payment = 5,000 × (0.0125/0.36059084219)
Amortization Payment = 5,000 × 0.0346653285
Amortization Payment = $173.33

Amortization Schedule:
1 2 3 4 5
Period Outstanding Principal Interest due at the Payment at the Portion of
(1 at the Beginning end of the period end of each Principal
month period reduced by each
interval) payment
1. 5,000.00 62.50 173.33 110.83
2. 4,889.17 61.11 173.33 112.22
3. 4,776.95 59.71 173.33 113.62
4. 4,663.33 58.29 173.33 115.04
5. 4,548.29 56.85 173.33 116.48
6. 4,431.81 55.40 173.33 117.93
7. 4,313.88 53.92 173.33 119.41
8. 4,194.47 52.43 173.33 120.90
9. 4,073.57 50.92 173.33 122.41
10. 3,951.16 49.39 173.33 123.94
11. 3,827.22 47.84 173.33 125.49
12. 3,701.73 46.27 173.33 127.06
13. 3,574.67 44.68 173.33 128.65
14. 3,446.02 43.08 173.33 130.25
15. 3,315.77 41.45 173.33 131.88
16. 3,183.89 39.80 173.33 133.53
17. 3,050.36 38.13 173.33 135.20
18. 2,915.16 36.44 173.33 136.89
19. 2,778.27 34.73 173.33 138.60
20. 2,639.67 33.00 173.33 140.33
21. 2,499.34 31.24 173.33 142.09
22. 2,357.25 29.47 173.33 143.86
23. 2,213.39 27.67 173.33 145.66
24. 2,067.73 25.85 173.33 147.48
25. 1,920.25 24.00 173.33 149.33
26. 1,770.92 22.14 173.33 151.19
27. 1,619.73 20.25 173.33 153.08
28. 1,466.65 18.33 173.33 155.00
29. 1,311.65 16.40 173.33 156.93
30. 1,154.72 14.43 173.33 158.90
31. 995.82 12.45 173.33 160.88
32. 834.94 10.44 173.33 162.89
33. 672.05 8.40 173.33 164.93
34. 507.12 6.34 173.33 166.99
35. 340.13 4.25 173.33 169.08
36. 171.05 2.14 173.19 171.05
TOTAL 1,239.74 6,239.74 5,000

You might also like