1 of 8 0-day streak

Construct and interpret an amortisation table

Question 1 of 8

Calculator allowed

The following posted-cents model applies to the renovation loan

$B_0$ is the initial loan balance, before any interest or cash flow. Here $B_0$=$115,000

The nominal annual interest rate is 10.5%, compounded annually. The rate for one year is 10.5%

A repayment of $24,665 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	Payment	Interest	Principal reduction	Balance
1	$24,665	?	?	?
2	$24,665	?	$13,911.95	$88,498.05

Payment 1: Interest Payment 1: Principal reduction Payment 1: Balance Payment 2: Interest