1 of 8 0-day streak

Construct and interpret an amortisation table

Question 1 of 8

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The following posted-cents model applies to the personal loan

$B_0$ is the initial loan balance, before any interest or cash flow. Here $B_0$=$38,000

The nominal annual interest rate is 12%, compounded annually. The rate for one year is 12%

A repayment of $7,572 is made at the end of each year, after interest

Interest is posted to the nearest cent each period, using half-away-from-zero rounding. Each posted balance is fed into the next row; do not carry an unposted fraction of a cent

4 marks

Complete the first payment row and the linked interest entry in the second row. Give all money amounts to the nearest cent

All money amounts are in dollars
Payment number	Loan repayment	Interest	Reduction in principal	Balance
1	$7,572	?	?	?
2	$7,572	?	$3,373.44	$31,614.56

Payment 1: Interest Payment 1: Reduction in principal Payment 1: Balance Payment 2: Interest