You have taken a loan of $92,000.00 for 35 years at a 4.9% annual interest rate, with interest compounded quarterly. Fill in the amortization table below to show how the payments will be applied to interest and principal: (Round all answers to 2 decimal places. Please note the order of the headings in the table - make sure you put the answers in the appropriate columns as layed out below.)

You have taken a loan of $92,000.00 for 35 years at a 4.9% annual interest rate, with interest compounded quarterly. Fill in the amortization table below to show how the payments will be applied to interest and principal: (Round all answers to 2 decimal places. Please note the order of the headings in the table - make sure you put the answers in the appropriate columns as layed out below.)

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section4.17: Amortized Loans

Problem 1ST

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Concept explainers

Amortized Loans

The term "amortization" refers to spreading the value of a loan or a debt over a series of regular payments or installments comprising of both the principal and interest amount. It generally involves the process where in the value of a loan or an intangible asset is written down over its maturity period.

Question

You have taken a loan of $92,000.00 for 35 years at a 4.9% annual interest rate, with interest
compounded quarterly. Fill in the amortization table below to show how the payments will be
applied to interest and principal: (Round all answers to 2 decimal places. Please note the order of
the headings in the table - make sure you put the answers in the appropriate columns as layed out
below.)
Payment number Payment amount Principal Amount Interest
0)
1)
2)
3)
$
LA
tA
+A
LA
$
Balance
$92,000.00
tA
LA

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