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Sagot :
The total amount of interest paid after two years is $1,246.15.
What is an amortization schedule?
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
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