Chapter 5, 9

Prepare an amortization schedule for a three-year loan of $114,000. The interest rate is 11 percent per year, and the loan agreement calls for a principal reduction of $38,000 every year. How much total interest is paid over the life of the loan? (Leave no cells blank. Enter '0' where necessary. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

Year 1 2 3

Beginning Balance _ _ _

Interest Payment _ _ _

Total Interest _

Payment Principal _ _ _

Payment Ending Balance _ _ _