Question

The following table shows the first segment of a five-year amortization schedule.

Answer 1

After one year of payments, the amount need to be paid to interest is $1100.42 if the first segment of a five-year amortization schedule is a 5-year amortization schedule option (a) is correct.

What is a loan amortization schedule?

It is defined as the systematic way of representation of loan payments according to the time in which the principal amount and interest mentioned in a list manner.

We have a table given that showing a first segment of a five-year amortization schedule that has a 5-year amortization schedule and the amount of interest paid for months 1 through 12.

As the loan amount is not mentioned in the question, we are assuming the loan amount is $1184.6

Therefore, loan amount = $1184.6

The outstanding amount at the end of one year, which is 12 months, is shown in the table as $84.18

After one year of payments, the amount need to be paid to interest:

= Loan amount - Outstanding amount after 12 months

= 1184.6 - 84.18

= $1100.425

Thus, after one year of payments, the amount need to be paid to interest is $1100.42 if the first segment of a five-year amortization schedule is a 5-year amortization schedule option (a) is correct.

Learn more about the amortization schedule here:

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