Homework: Amortization Schedules

1. Suppose an $85,000 loan, at an annual rate of 4.2% compounded monthly, is amortized over 15 years.
1. Determine the monthly payment on the loan.
   
   
2. Determine the total interest to be paid on the loan.
   
   
3. Find the loan balance that remains to be paid after 10 years.
   
   
4. Construct an amortization schedule for the first 4 monthly payments giving, for each payment, the interest paid, the payment on principle, and the loan balance that remains.



2. Repeat Problem 1 using an annual rate of 9% compounded monthly.