Question

You have amortization schedule to pay back $1,200 with 3% for 24-payments (Your first payment is one period from today.). From the 1st to 24th payments, what is your interest payment amount?

Answer 1

To find the interest payment amount for each period in an amortization schedule, you can use the formula: Interest Payment = Outstanding Loan Balance × Interest Rate.

To calculate the interest payment amount for each period in an amortization schedule, you can use the formula:

Interest Payment = Outstanding Loan Balance × Interest Rate.

In this case, with a loan amount of $1,200, an interest rate of 3%, and a term of 24 payments, you can calculate the interest payment for each period. The outstanding balance decreases with each payment as the loan is amortized.

The outstanding balance decreases with each payment as the loan is amortized. This formula helps determine the interest component in each payment, considering that the first payment is due one period from today.

Given that the first payment is one period from today, you would calculate the interest payment for each of the 24 payments in the amortization schedule to determine the interest component of each payment.