| Loan amount = |
5000 |
| Interest rate annual is 9% compounded monthly.So monthly rate =
9%/12= |
0.0075 |
|
Semiannual rate = ( (1+monthly rate)^no. of months in semiannual
year) -1
|
|
| ((1+0.0075)^6)-1= |
0.0458522351 |
| Total semiannual periods = |
5 |
|
Equal annual payments for loan formula = P* i
*((1+i)^n)/((1+i)^n-1)
|
|
|
5000*0.0458522351*((1+0.0458522351)^5)/(((1+0.0458522351)^5)-1)
|
|
| $1,141.66 |
|
So, interest and principal payment is calculated in following
amortization table.
|
Loan amortization table
|
|
|
|
|
| Year |
Beginning balance |
Payment |
Interest |
Principal payment |
Ending balance |
|
|
|
|
|
|
|
|
|
(Beg. Bal.*0.0458522351) |
(Payment - interest) |
(Beg. Balance - principal payment.)
|
| 1 |
5000.00 |
1141.66 |
229.26 |
912.40 |
4087.60 |
| 2 |
4087.60 |
1141.66 |
187.43 |
954.24 |
3133.36 |
| 3 |
3133.36 |
1141.66 |
143.67 |
997.99 |
2135.36 |
| 4 |
2135.36 |
1141.66 |
97.91 |
1043.75 |
1091.61 |
| 5 |
1091.61 |
1141.66 |
50.05 |
1091.61 |
0.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
5708.32 |
708.32 |
5000.00 |
|
