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  • Loan Amorti Excel

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    s.benzouhri
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    The document compares two loan amortization schedules for a $5,000 loan at 5% and 9% interest over 5 years. The 9% loan has higher yearly interest payments that decrease each year as the principal is paid down, with a total interest of $1,350. The 5% loan has a constant monthly payment that is applied first to interest then principal, with interest payments decreasing each year and total interest of $1,427.31. Both loans are fully paid off after 5 years with $5,000 of principal paid.

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    The document compares two loan amortization schedules for a $5,000 loan at 5% and 9% interest over 5 years. The 9% loan has higher yearly interest payments that decrease each year as the principal is paid down, with a total interest of $1,350. The 5% loan has a constant monthly payment that is applied first to interest then principal, with interest payments decreasing each year and total interest of $1,427.31. Both loans are fully paid off after 5 years with $5,000 of principal paid.

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    © All Rights Reserved
    Download as ODS, PDF, TXT or read online from Scribd
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    5 views2 pages

    Loan Amorti Excel

    Uploaded by

    s.benzouhri
    The document compares two loan amortization schedules for a $5,000 loan at 5% and 9% interest over 5 years. The 9% loan has higher yearly interest payments that decrease each year as the principal is paid down, with a total interest of $1,350. The 5% loan has a constant monthly payment that is applied first to interest then principal, with interest payments decreasing each year and total interest of $1,427.31. Both loans are fully paid off after 5 years with $5,000 of principal paid.

    Copyright:

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

    Two loan amortizations

    9% 5
    Five-year loan of $5000 at 9 percent. 5000
    Constant principal to be paid:
    Year Beginning balance Total PMT Interest
    1 5000 1450 450
    2 4000 1360 360
    3 3000 1270 270
    4 2000 1180 180
    5 1000 1090 90
    6350 1350

    Constant total payment per year:


    Year Beginning balance Total PMT Interest
    1 5000 $ 1,285.46 $ 450.00
    2$ 4,164.54 $ 1,285.46 $ 374.81
    3$ 3,253.88 $ 1,285.46 $ 292.85
    4$ 2,261.27 $ 1,285.46 $ 203.51
    5$ 1,179.32 $ 1,285.46 $ 106.14
    $ 6,427.31 $ 1,427.31
    Principal paid End balance
    1000 4000
    1000 3000
    1000 2000
    1000 1000
    1000
    5000

    Principal paid End balance


    $ 835.46 $ 4,164.54
    $ 910.65 $ 3,253.88
    $ 992.61 $ 2,261.27
    $ 1,081.95 $ 1,179.32
    $ 1,179.32
    $ 5,000.00

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