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You take out a 30 year loan for 450,000 at a 6% rate annually. The loan is to be paid off in equal installments over 30 years.

You take out a 30 year loan for 450,000 at a 6% rate annually. The loan is to be paid off in equal installments over 30 years. Far an amaorization table showing the beginning balance, total payment, principle repayment, interest payment and ending balance for each month. How much is the total interest payment for the five months?
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Total Interest... View the full answer

9 comments
  • im sorry i can not see the table
    • jessicamgraham
    • May 03, 2018 at 7:20am
  • Let me try and give calculations here :- Monthly Payment (Using Excel) = PMT(6%/12, 30*12, -450000) = $2,697.98
    • aditiagarwala18
    • May 03, 2018 at 7:22am
  • Interest Component in First Payment = 450000*6%/12 = $2,250 : Principal Repaid in First Payment = 2,697.98 - 2,250 = $447.98
    • aditiagarwala18
    • May 03, 2018 at 7:23am
  • Interest Component in Second Payment = (450000-447.98)*6%/12 = $$2,247.76 ; Principal Repaid in Second instalment = 2697.98-2247.76 = $450.22
    • aditiagarwala18
    • May 03, 2018 at 7:23am
  • Interest Component in Thirds Payment = (450000-447.98-450.22)*6%/12 = $2,245.51 ; Principal Repaid in third installment = 2697.98-2245.51 = $452.47
    • aditiagarwala18
    • May 03, 2018 at 7:24am
  • Interest Component in fourth Payment = (450000-447.98-450.22-452.47)*6%/12 = $2,243.25 ; Principal Repaid in fourth installment = 2697.98-2243.25 = $454.73
    • aditiagarwala18
    • May 03, 2018 at 7:26am
  • Interest Component in fifth Payment = (450000-447.98-450.22-452.47-454.73)*6%/12 = $2,240.97 ; Principal Repaid in fifth installment = 2697.98-2240.97 = $457
    • aditiagarwala18
    • May 03, 2018 at 7:26am
  • Total Interest = 2250 + $2,247.76 + $2,245.51 + $2,243.25 + $2,240.97 = $11,227.49
    • aditiagarwala18
    • May 03, 2018 at 7:27am
  • Hope this helps. Thanks
    • aditiagarwala18
    • May 03, 2018 at 7:27am

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