Answer:
Amortization schedule for a five-year loan
Year 1
Principle $11,195.19
Interest $6,030.00
Balance $55,804.81
Year 2
Principle $12,202.76
Interest $5,022.43
Balance $43,602.04
Year 3
Principle $13,301.01
Interest $3,924.18
Balance $30,301.03
Year 4
Principle $14,498.10
Interest $2,727.09
Balance $15,802.93
Year 5
Principle $15,802.93
Interest $1,422.26
Balance $0.00
Explanation:
First Calculate the equal annual payments, Pmt of the loan as follows :
Pv = $67,000
n = 5
r = 9.00 %
p/yr = 1
Fv = $ 0
Pmt = ?
Using a financial calculator, the equal annual payments, Pmt is - $17,255.19
Then Construct the amortization schedule :
This can be obtained from a financial calculator as SHIFT AMORT
