Principal and Interest

Question

Suppose you have a 15-year loan for $314,000 with an APR of 6%.
Using your calculator or Excel, make a table showing the amount of interest paid, the amount of principal paid, and the ending balance for each of the first 3 months of the loan. Be sure to report only your Month 3 results. Round to the nearest cent and do not use commas.

9. Interest Paid: $

Answer 1

No. of Payments
In cell B1:    180  <------(15 years * 12 months)
  
Present Value of Loan
In cell B2:   $314000.00 
  
Annual Percentage Rate, broken down monthly
In cell B3:   0.005  <------(6% / 12 months)

 

In cell B6:   3
In cell D6:  (Balance from Payment No. 2)
  
PAYMENT NO. 3
PAYMENT      ($2649.71)    =PMT($B$3,$B$1,$B$2)
PRINCIPAL    ($1090.53)    =PPMT($B$3,B6,$B$1,$B$2)
INTEREST     ($1559.18)    =IPMT($B$3,B6,$B$1,$B$2)
BALANCE      $312909.47   =$B$2+D6

 
Please let me know if you have any questions,

 

Lauri K.