C OF
The following table shows a portion of a three-year amortization schedule.
3 Year Amortization Schedule
Loan Amount or Principal S 11.940.00
Interest Rate on Loan
7.45%
Extra Payment to Principal $
Month Payment Principal Interest Balance
171 $ 371.13 S 327.92 S 43.21 S 6,632.16
18 5 371.13 S 329.96 41.17 S 6.302.20
19 $ 371.13 S 332 01 | $ 39 13 S 5.970.19
20 S
371.13 S 334.07 S 37.06S 5.636.12
21 S 371.13 S 336.14 S 34.99S 5.299.98
22 s 371.13 S 338.23S 32.90S 4.961.75
23 S
371.13 S 340.33S 30.80S 4.621.42
24 S
371.13 S 342.44S 28.69S 4.278.98
25 S 371.13 S 344.575 26.57 S 3.934 41
After two years, how much has been paid into interest?
a $4,628.14
b $1,246.10
C С
$978.96
d. $1,912.05
Hi

An amortization schedule is a table that shows the periodic payments, portions of interest and principal paid, and the loan balance. It is useful for financial managers to understand how much is remaining unpaid and the amount to record as the interest expense periodically.

Data and Calculations:

Loan Amount or Principal = $11,940.00

Interest Rate on Loan = 7.45%

Extra Payment to Principal $0

Month Payment Principal Interest Balance

17 $371.13 $327.92 $43.21 $6,632.16

18 $371.13 $329.96 $41.17 $6,302.20

19 $371.13 $332.01 $39.13 $5,970.19

20 $371.13 $334.07 $37.06 $5,636.12

21 $371.13 $336.14 $34.99 $5,299.98

22 $371.13 $338.23 $32.90 $4,961.75

23 $371.13 $340.33 $30.80 $4,621.42

24 $371.13 $342.44 $28.69 $4,278.98

25 $371.13 $344.57 $26.57 $3,934 41

Full Amortization Schedule

Period PV PMT Interest FV

1 $-11,939.87 $371.13 $-74.13 $11,642.86

2 $-11,642.86 $371.13 $-72.28 $11,344.02

3 $-11,344.02 $371.13 $-70.43 $11,043.31

4 $-11,043.31 $371.13 $-68.56 $10,740.74

5 $-10,740.74 $371.13 $-66.68 $10,436.30

6 $-10,436.30 $371.13 $-64.79 $10,129.96

7 $-10,129.96 $371.13 $-62.89 $9,821.72

8 $-9,821.72 $371.13 $-60.98 $9,511.57

9 $-9,511.57 $371.13 $-59.05 $9,199.49

10 $-9,199.49 $371.13 $-57.11 $8,885.47

11 $-8,885.47 $371.13 $-55.16 $8,569.50

12 $-8,569.50 $371.13 $-53.20 $8,251.58

Year #1 end

Total interest for the first year = $765.26

13 $-8,251.58 $371.13 $-51.23 $7,931.67

14 $-7,931.67 $371.13 $-49.24 $7,609.79

15 $-7,609.79 $371.13 $-47.24 $7,285.90

16 $-7,285.90 $371.13 $-45.23 $6,960.00

17 $-6,960.00 $371.13 $-43.21 $6,632.08

18 $-6,632.08 $371.13 $-41.17 $6,302.13

19 $-6,302.13 $371.13 $-39.13 $5,970.12

20 $-5,970.12 $371.13 $-37.06 $5,636.06

21 $-5,636.06 $371.13 $-34.99 $5,299.92

22 $-5,299.92 $371.13 $-32.90 $4,961.69

23 $-4,961.69 $371.13 $-30.80 $4,621.37

24 $-4,621.37 $371.13 $-28.69 $4,278.93

Year #2 end

Total interest for the second year = $480.89

Total interest after two years = $1,246.15 ($765.26 + $480.89)

Thus, the total amount of interest paid after two years is $1,246.15.

Learn more about calculating loan amortization balances at brainly.com/question/14511778