AMORTIZATION OF CREDITS

Instructions: Solve the following problems about amortization in the format provided
by the teacher.

1. Arturo purchases land costing $160,000. He pays a down payment of 25%

and will pay the remainder in equal monthly payments for one year at a rate
of 24% per annum convertible monthly.
a) Find the monthly amount to be made by Arturo.
b) Construct the amortization table
Data Procedure

Amortization table
Payment Rent Interest Amortization Book value
1
2
…
Total
 2. A loan of $9,000 is to be repaid in 6 equal monthly payments. Obtain the rent
at the end of each month if the interest rate is 42% compounded monthly.
Construct the amortization table that corresponds to this loan.
Data Procedure

Amortization table
Payment Rent Interest Amortization Book value
1
2
…
Total
 3. Construct the amortization table for a $7,500 debt that is covered with 7
bimonthly payments due with an interest rate of 30% compounded bimonthly.
Data Procedure

Amortization table
Payment Rent Interest Amortization Book value
1
2
…
Total

IMPORTANT: The project represents the 25% of the general assessment, thus the first
revision has a value of 5% (you’ll have the chance to do the necessary correction to the
problems and observations given by the teacher) and the final submission has a value
of 20%, if you don’t deliver one of the parts of the project the percentage of the part you
don’t deliver will be subtracted to the 25% of the project.
If you have questions please send me an email dhaguilar@greenville.edu.mx
 AMORTIZATION OF CREDITS
Instructions: Solve the following problems about amortization in the format provided by the teacher.

Arturo purchases land costing $160,000. He pays a down payment of 25% and will pay the remainder in equal
monthly payments for one year at a rate of 24% per annum convertible monthly.

a. Find the monthly amount to be made by Arturo.

b. Construct the amortization table

R: $11,347.15159

PAYMENT RENT INTEREST AMORTIZATION BOOK VALUE

0 120,000

1 11,347.15 2400 8,947.15 111,052.85

2 2221.057 9,126.093 101,926.757

3 2038.53 9,308.62 92,618.137

4 1852.36 9,494.79 83,123.347

5 1662.46 9,684.69 73,438.65

6 1468.77 9,878.38 63,560.27

7 1271.20 10,075.95 53,484.32

8 1069.68 10,277.47 43,206.85

9 864.137 10,483.013 32,723.837

10 654.47 10,692.68 22,031.157

11 440.62 10,906.53 11,124.62

12 222.49 11,124.66 -0.04

2. A loan of $9,000 is to be repaid in 6 equal monthly payments. Obtain the rent at the end of each month if the
interest rate is 42% compounded monthly. Construct the amortization table that corresponds to this loan.

R: $1,689.013878

PAYMENT RENT INTEREST AMORTIZATION BOOK VALUE

0 9000

1 1,689.01 315 1,374.01 7625.99

2 266.90 1,422.11 6203.88

3 217.13 1,471.88 4732

4 165.62 1,523.39 3208.61

5 112.30 1,576.71 1631.9

6 57.11 1,631.9 0

3. Construct the amortization table for a $7,500 debt that is covered with 7 bimonthly payments due with an
interest rate of 30% compounded bimonthly.

R: $1,296.1486

PAYMENT RENT INTEREST AMORTIZATION BOOK VALUE

0 7,500

1 1,296.14 375 921.14 6,578.86

2 328.94 967.2 5,611.66

3 280.58 1015.56 4,596.1

4 229.80 1066.34 3,529.76

5 176.48 1119.66 2,410.1

6 120.50 1175.64 1,234.46

7 61.72 1234.42 0.04