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  • Loan Amortization

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    Omar Mahdi Adnan Al-Sharkawi
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    The document outlines the amortization of a $300,000 loan over 5 years at two different interest rates: 9.27% and 7%. It shows the beginning principal balance, total payment, interest component, and principal component for each year of the loan at both interest rates. The higher interest rate of 9.27% results in larger total payments, interest components, and smaller reductions to the principal balance each year compared to the 7% interest rate.

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    Loan Amortization.xlsx

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    The document outlines the amortization of a $300,000 loan over 5 years at two different interest rates: 9.27% and 7%. It shows the beginning principal balance, total payment, interest component, and principal component for each year of the loan at both interest rates. The higher interest rate of 9.27% results in larger total payments, interest components, and smaller reductions to the principal balance each year compared to the 7% interest rate.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    8 views2 pages

    Loan Amortization

    Uploaded by

    Omar Mahdi Adnan Al-Sharkawi
    The document outlines the amortization of a $300,000 loan over 5 years at two different interest rates: 9.27% and 7%. It shows the beginning principal balance, total payment, interest component, and principal component for each year of the loan at both interest rates. The higher interest rate of 9.27% results in larger total payments, interest components, and smaller reductions to the principal balance each year compared to the 7% interest rate.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    of 2

    Loan Amortization

    Inputs
    present value $300,000
    itrest rate / year 9.27%
    number of years 5

    Output
    year 1 2 3 4 5
    Beg . Principal balance $300,000 $250,141 $208,569 $173,905 $145,003
    Payment $77,669 $64,761 $53,998 $45,023 $37,541
    intrest component $27,810 $23,188 $19,334 $16,121 $13,442
    principal component $49,859 $41,572 $34,663 $28,902 $24,099
    Loan Amortization
    Inputs
    present value $300,000
    itrest rate / year 7.00%
    number of years 5

    Output
    year 1 2 3 4 5
    Beg . Principal balance $300,000 $247,833 $204,737 $169,135 $139,724
    Payment $73,167 $60,444 $49,933 $41,250 $34,077
    intrest component $21,000 $17,348 $14,332 $11,839 $9,781
    principal component $52,167 $43,096 $35,602 $29,411 $24,297

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