Answer:
Amortization Schedule
Year Payment Principal Interest Balance
1 35,560.00 28,000.00 7,560.00 56,000.00
2 33,040.00 28,000.00 5,040.00 28,000.00
3 30,520.00 28,000.00 2,520.00 0.00
Explanation:
Loan of $84,000.00 at 9% interest with 3 annual payments at Constant Principal Payments of $28000 .
Total Payments: $99,120.00 Total Interest: $15,120.00
The Interest payment and principal amount is gradually decreased with principal value of the loan. The principal value at the end of the year 3 is zero.
