MAT 146 Jefferson Community & Technical College Amortization Task

ASSUME TAHT I AM PAYING OFF A MORTGAGE OF $379,000

PLEASE SEE THE DETAILS BELOW

Now that you have made a Savings Plan Schedule based on money you are saving each month. For this challenge we will make a Loan Payment Schedule (aka, an Amortization table).

Creating an Amortization table is very similar to creating a savings plan schedule; essentially the difference is you will start with an initial amount (Principle loan Balance) and when accruing the interest each month you will SUBTRACT the interest from the monthly payment AND then subtract that value from the loan Principle.

To do this assignment you will need to make several assumptions. First you’ll have to suppose you are paying off a loan, could be a house, car, student loan, or credit card, etc…

Next you will need to come up with an actual amount for a principle loan amount. Next you will have to assume you are going to pay a monthly payment toward this loan. Assume that the loan is 13% APR (don’t forget to divide that by 12 in the table.)

Create an Amortization TWICE, do it with on monthly payment amount and then do it with a HIGHER monthly payment amount.

The goal is to analyze the time it takes to pay off the loan and to compare the amount of interest accrued in each case.

It is required to input graphs to expedite the differences in each case.