Tanya is trying to prepare her loan amortization schedule for the renovation of her bed-and-breakfast facility. Her banker is quoting her an interest rate of 12% for four years. The loan amount is $25,000. Prepare the loan amortization schedule.

3. The first step in developing an amortization schedule is calculating the payment.

PV =

I/Y =

N =

CPT PMT =

After calculating debt service the amortization schedule can be developed:

Year Payment Principle Interest Balance

1

2

3

4