A loan of amount $19316.84 is repaid in 15 annual payments beginning 1 year after the loan is made. The first payments are $1100 each, and the final 9 payments are each $2200. Interest is at an effective annual rate of 3.6% What is the amount of the principal repayment in the 6th payment?

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Amortized Loans

The term "amortization" refers to spreading the value of a loan or a debt over a series of regular payments or installments comprising of both the principal and interest amount. It generally involves the process where in the value of a loan or an intangible asset is written down over its maturity period.