Ok i found an example online and the principal through out the term never changed is this right? This is my problem ( all these where blank on a table and i had to fill them in.) I dont know how to do the 6th period because your going over the amount of the begninng balance?
Assume you take out a simple interest on the unpaid balance loan to buy some new equipment. The loan amount is $15,000 for three-years, 10% interest loan with semi-annual payments made.
Period BeginningBalance Principal Interest TotalPayment EndingBalance
1 15,000.00 $2,500 1,500.00 4,000 11,000.00
2 11,000.00 2,500 1,100.00 3,600 7,400.00
3 7,400.00 2,500 740.00 3240 4,160.00
4 4,160.00 2,500 416.00 2,916.00 3,332.00
5 3,332.00 2,500 333.20 2833.20 498.80
6 498.80 2,500
Assume you take out a simple interest on the unpaid balance loan to buy some new equipment. The loan amount is $15,000 for three-years, 10% interest loan with semi-annual payments made.
Period BeginningBalance Principal Interest TotalPayment EndingBalance
1 15,000.00 $2,500 1,500.00 4,000 11,000.00
2 11,000.00 2,500 1,100.00 3,600 7,400.00
3 7,400.00 2,500 740.00 3240 4,160.00
4 4,160.00 2,500 416.00 2,916.00 3,332.00
5 3,332.00 2,500 333.20 2833.20 498.80
6 498.80 2,500