Question

3. A company borrowed $13,000 paying interest at 8% compounded quarterly. If the loan is repaid by payments of $1800 made at the end of each 3 months, construct a partial amortization schedule showing the last three payments, the total paid, and the total interest paid. Complete the table below for the last three payments. (Do not round until the final answer. Then round to the nearest cent as needed.) Payment Outstanding Number Amount Paid Interest Paid Principal Repaid Principal 6 $1800 $ 7 $1800 8 $0 $ $ Total Paid = $ (Do not round until the final answer. Then round to the nearest cent as needed.) Interest Paid = $ (Do not round until the final answer. Then round to the nearest cent as needed.)

Answer 1

Answer: Working Note Amortization Schedule Payment Period Amount Paid Interest paid Pricipal Repaid Outstanding Principal 1 $ 1,800.00 $ 260.00 $ 1,540.00 $ 11,460.00 2 $ 1,800.00 $ 229.20 $ 1,570.80 $ 9,889.20 3 $ 1,800.00 $ 197.78 $ 1,602.22 $ 8,286.98 4 $ 1,800.00 $ 165.74 $ 1,634.26 $ 6,652.72 5 $ 1,800.00 $ 133.05 $ 1,666.95 $ 4,985.78 6 $ 1,800.00 $ 99.72 $ 1,700.28 $ 3,285.49 7 $ 1,800.00 $ 65.71 $ 1,734.29 $ 1,551.20 8 $ 1,800.00 $ 248.80 $ 1,551.20 $ 0.00 Total $ 1,400.00 $ 13,000.00 1. Last Three payments Schedule Payment Period Amount Paid Interest paid Pricipal Repaid Outstanding Principal $ 1,800.00 $ 99.72 $ 1,700.28 $ 3,285.49 $ 1,800.00 $ 65.71 $ 1,734.29 $ 1,551.20 $ 1,800.00 $ 248.80 $ 1,551.20$ 0.00 6 7 8 Total Paid $ Total Interest Pai $ 14,400 1,400