Asked by Jayleen Ailani on Jun 18, 2024
Verified
Larissa bought a stereo for $5,000. She made a down payment of $1,000, and financed the balance with monthly payments over four years at 8.5% compounded quarterly. Construct a partial amortization schedule showing details of the first two payments, payments 22 and 23, and the last two payments. How much interest did Larissa pay in total?
Amortization Schedule
A table detailing each periodic payment on an amortizing loan, breaking down the amounts going toward principal and interest.
- Produce and review amortization schedules.
- Identify the implications of interest rate variability on monthly charges and total interest payments.
Verified Answer
ES
Learning Objectives
- Produce and review amortization schedules.
- Identify the implications of interest rate variability on monthly charges and total interest payments.