Question

you have amortization schedule to pay back $25,000 with 6% for 10-payments (your first payment is one period from today.). for the 3rd payment, what is your principal payments amount? $2131. $2141. $2151. $2161.

Answer 1

The principal payment for the 3rd payment of a $25,000 loan with 6% interest for 10 payments is $2151.

Step-by-step explanation:

An amortization schedule is used to track the principal and interest payments for a loan over time. The principal payment is the portion of the payment that goes towards reducing the loan amount. In this case, we have a loan of $25,000 with a 6% interest rate for 10 payments. To find the principal payment for the 3rd payment, we need to calculate the amount of principal that has been paid off in the previous two payments.

Each payment can be calculated using the formula:

Payment = Principal payment + Interest payment

Using the given information, we can calculate the monthly payment:

Monthly payment = $25,000 / 10 = $2,500

Now, we can calculate the interest payment for the 3rd payment:

Interest payment = (Loan amount - Remaining principal) x Interest rate

For the 3rd payment, the remaining principal can be calculated as:

Remaining principal = Loan amount - (Principal payment for 1st payment + Principal payment for 2nd payment)

Using the amortization schedule and calculations, the principal payment for the 3rd payment is $2151.