15-5-3

Amortization

kExample 2 (Amortization)

Use the monthly payment value you obtained in Example 1 (PMT = –837.9966279) to determine the following information for payment 10 (PM1) through 15 (PM2).

As in Example 1, the mortgage has a loan amount (PV) of $100,000 at an annual rate (I%) of 8.025%, compounded monthly (C/Y = 12) for 20 years.

There are 12 payment periods per year (P/Y).

•The balance (BAL) of the principal remaining after payment 15

•The interest amount (INT) included in payment 10

•The principal amount (PRN) included in payment 10

•Total interest to be paid (sumINT) from payment 10 to payment 15

•Total principal to be paid (sumPRN) from payment 10 to payment 15

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