A loan amortization schedule allows you to see the amount you are paying towards interest and the outstanding balance of the loan. Since the amount of interest is based on the outstanding principal, you can compute the interest portion directly by multiplying the interest rate by the beginning of the period outstanding balance. When you subtract interest from the overall payment, you see the portion being applied towards the principal, which reduces the ending period outstanding balance, which hence becomes the beginning of the period balance period for the next time period.

Required:

How many times have you been provided an amortization schedule when applying for a loan? Why do you think amortization schedules are important? How should the government mandate loan information disclosure? Write 300 words.

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