Subjects finance

Amortization Table

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Amortization Table


1. The problem is to create a full amortization table, which shows payments, interest, principal, and remaining balance over time. 2. Typically, an amortization table is based on loan amount, interest rate, loan term, and payment frequency. 3. Without specific values, let's explain the general formulas: 4. Monthly payment formula for loan amount $P$, annual interest rate $r$, number of monthly payments $n$: $$\text{Payment} = P\times \frac{r/12}{1-(1+r/12)^{-n}}$$ 5. For each payment period $k$ (from 1 to $n$): - Calculate interest portion: $I_k = \text{balance}_{k-1} \times \frac{r}{12}$ - Calculate principal portion: $\text{principal}_k = \text{payment} - I_k$ - Update balance: $\text{balance}_k = \text{balance}_{k-1} - \text{principal}_k$ 6. This repeats until the balance is zero after $n$ payments. 7. Please provide loan amount, interest rate, term, and payment frequency to create the full specific amortization table.