**Loan Amortization Table Construction**This example demonstrates how to create a loan amortization table for a loan of $7,000 with an Annual Percentage Rate (APR) of 9% and a loan term of 10 years. The objective is to verify that with monthly payments of $88.67, the loan balance will be reduced to $0 after 120 months.*Instructions for Part (a)***Objective:** Use technology to construct a table showing the interest payment, principal payment, and loan balance after each month.*Note:* Do not round until the final answer. Then, round to the nearest cent as needed.**Loan Amortization Details:**- **Initial Loan Amount:** $7,000- **Monthly Payment:** $88.67- **APR:** 9%- **Loan Term:** 10 years (120 months)| Month | Interest | Principal | Balance ||-------|----------|-----------|----------|| 0 | | | $7,000.00|| 1 | $52.50 | $36.17 | $6,963.83|| 2 | | | || ... | | | || 119 | | | || 120 | | | |**Diagram Explanation:**- The table is structured to show each month from the start of the loan (month 0) to the end (month 120).- Under each month, the columns display the interest payment, principal payment, and remaining loan balance.- The interest for the first month is calculated as $52.50, and the principal payment is $36.17, reducing the initial balance from $7,000.00 to $6,963.83.- The process repeats, with monthly payments continuing until month 120 when the balance should reach $0.

Loan is $7000 APR is 9% Loan term is 10 years. Monthly payment is $88.67 To Verify: Balance at…

Consider a loan of $7000 with an APR of 9% and a loan term of 10 years. Complete parts (a) through (c) below. a. Use technology to construct a table showing the interest payment and loan balance after each month. Verify that, with monthly payments of $88.67, the loan balance reaches $0 after 120 months. (Do not round until the final answer. Then round to the nearest cent as needed.) Month Interest Principal Balance $7000.00 S6963 83 S52.50 S36.17 1 119 120

Consider a loan of $7000 with an APR of 9% and a loan term of 10 years. Complete parts (a) through (c) below. a. Use technology to construct a table showing the interest payment and loan balance after each month. Verify that, with monthly payments of $88.67, the loan balance reaches $0 after 120 months. (Do not round until the final answer. Then round to the nearest cent as needed.) Month Interest Principal Balance $7000.00 S6963 83 S52.50 S36.17 1 119 120

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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