14-12. A loan amortization table shows the effect of each payment on the amount of principal still owed. A worksheet for constructing loan amortization tables for 48-month loans is shown below. The worksheet has two input cells: (1) the principal of the loan (the original amount borrowed) and (2) the annual interest rate. All other numbers in the worksheet are calculated Changing either or both of these input numbers will create a new amortization table. Note that in the table, the amount of interest owed each month is the monthly interest rate times the amount of the principal still owed at the beginning of the month. The amount of the payment that goes to reducing the principal is the amount of the payment that is left over. If all of the calculations are correct, then the principal owed at the end of the forty-eighth month should be 0. FINANCIAL FUNCTIONS | 295 (a) Duplicate the works oan at 12% and on a $4,000 loan at 2.9%. licate the worksheet. Try it on the loan shown in the worksheet and then on a $53,000 Construct a similar worksheet for 36-month loans. Try the worksheet on the same three sets of data. Loan Amortization - Excel Formulas Data Review File Home Insert Page Layout View Tell me... Sign in Share Loan Amortization Table for 48 Month Loans Principal: Annual Interest rate: $16,353.00 6.90% Resulting Monthly Interest Rate: Resulting Monthly Payment: 0.575% $390.83 Month Principal at Beginning $16,353.00 $16,056 20 $15,757.68 $1,159.15 $774.98 $388.60 Monthly Payment $390.83 $390.83 $390.83 $390.83 $390.83 $390.83 Interest Payment $94.03 $92.32 $90.61 $6.67 $4.46 $2.23 Principal Payment $296.80 $298.51 $300.23 $384.17 $386,38 $388.60 Principal at End of Period $16,056 20 $15,757.68 $15,457.46 $774.98 $388.60 $0.00 19th 14-12. A loan amortization table shows the effect of each payment on the amount of principal still owed. A worksheet for constructing loan amortization tables for 48-month loans is shown below. The worksheet has two input cells: (1) the principal of the loan (the original amount borrowed) and (2) the annual interest rate. All other numbers in the worksheet are calculated Changing either or both of these input numbers will create a new amortization table. Note that in the table, the amount of interest owed each month is the monthly interest rate times the amount of the principal still owed at the beginning of the month. The amount of the payment that goes to reducing the principal is the amount of the payment that is left over. If all of the calculations are correct, then the principal owed at the end of the forty-eighth month should be 0. FINANCIAL FUNCTIONS | 295 (a) Duplicate the works oan at 12% and on a $4,000 loan at 2.9%. licate the worksheet. Try it on the loan shown in the worksheet and then on a $53,000 Construct a similar worksheet for 36-month loans. Try the worksheet on the same three sets of data. Loan Amortization - Excel Formulas Data Review File Home Insert Page Layout View Tell me... Sign in Share Loan Amortization Table for 48 Month Loans Principal: Annual Interest rate: $16,353.00 6.90% Resulting Monthly Interest Rate: Resulting Monthly Payment: 0.575% $390.83 Month Principal at Beginning $16,353.00 $16,056 20 $15,757.68 $1,159.15 $774.98 $388.60 Monthly Payment $390.83 $390.83 $390.83 $390.83 $390.83 $390.83 Interest Payment $94.03 $92.32 $90.61 $6.67 $4.46 $2.23 Principal Payment $296.80 $298.51 $300.23 $384.17 $386,38 $388.60 Principal at End of Period $16,056 20 $15,757.68 $15,457.46 $774.98 $388.60 $0.00 19th
