Answer:
see attached
Explanation:
You want an amortization schedule for a loan of $55,000, repaid in 36 years with 3.9% interest compounded quarterly.
Payment amount
We assume the payments will be made quarterly. The amount of the payment is computed using the amortization formula:
A = P(r/n)/(1 -(1 +r/n)^(-nt))
where P is the principal amount of the loan, r is the annual interest rate, n is the number of payments and compoundings per year, and t is the number of years.
For this loan, the payment amount is ...
A = $55,000·(0.039/4)/(1 -(1 +0.039/4)^(-4·36)) = $712.42
Interest
The amount of interest is the quarterly interest rate multiplied by the balance. The interest due on the first payment is ...
(0.039/4)·($55,000) = $536.25
Principal amount
The amount of the payment left after paying interest is applied to the principal amount. The balance of the loan is reduced by that amount.
For the first payment, the amount used to reduce the principal is ...
$712.42 -536.25 = $176.17
New balance
As we said, the principal amount reduces the outstanding balance, so the balance after the first payment is ...
$55,000 - 176.17 = $54,823.83
These calculations are repeated for each row of the table, so it is convenient to let a spreadsheet do them.