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PARTIAL AMORTIZATION SCHEDULE There may be instances where it is necessary to determine the amortization details of a portion of the schedule. As a result, a Partial Amortization Schedule is created, as demonstrated in the following example: Clear Circuits Inc., an electrical contracting company, receives a loan of $130,000 at 6% compounded quarterly to purchase some heavy equipment. It must make payments of $5000 at the end of every month to settle the loan. Construct the Partial Amortization details and schedule for: (i) The First two payments. (ii) The Last two payments. (iii) The Total payment made and interest paid. Payment Amount Paid Interest Portion # (PMT) (INT) Principal Portion (PRN) Periodic 0 INT = BAL ((1+i) CY/PY − 1) PRN = PMT-INT Principal Balan (BAL) Initial Princip Payment 1 2 Totals

PARTIAL AMORTIZATION SCHEDULE There may be instances where it is necessary to determine the amortization details of a portion of the schedule. As a result, a Partial Amortization Schedule is created, as demonstrated in the following example: Clear Circuits Inc., an electrical contracting company, receives a loan of $130,000 at 6% compounded quarterly to purchase some heavy equipment. It must make payments of $5000 at the end of every month to settle the loan. Construct the Partial Amortization details and schedule for: (i) The First two payments. (ii) The Last two payments. (iii) The Total payment made and interest paid. Payment Amount Paid Interest Portion # (PMT) (INT) Principal Portion (PRN) Periodic 0 INT = BAL ((1+i) CY/PY − 1) PRN = PMT-INT Principal Balan (BAL) Initial Princip Payment 1 2 Totals

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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PARTIAL AMORTIZATION SCHEDULE There may be instances where it is necessary to determine the amortization details of a portion of the schedule. As a result, a Partial Amortization Schedule is created, as demonstrated in the following example: Clear Circuits Inc., an electrical contracting company, receives a loan of $130,000 at 6% compounded quarterly to purchase some heavy equipment. It must make payments of $5000 at the end of every month to settle the loan. Construct the Partial Amortization details and schedule for: (i) The First two payments. (ii) The Last two payments. (iii) The Total payment made and interest paid. Payment Amount Paid Interest Portion # (PMT) (INT) Principal Portion (PRN) Periodic 0 INT = BAL ((1+i) CY/PY − 1) PRN = PMT-INT Principal Balan (BAL) Initial Princip Payment 1 2 Totals
Transcribed Image Text:PARTIAL AMORTIZATION SCHEDULE There may be instances where it is necessary to determine the amortization details of a portion of the schedule. As a result, a Partial Amortization Schedule is created, as demonstrated in the following example: Clear Circuits Inc., an electrical contracting company, receives a loan of $130,000 at 6% compounded quarterly to purchase some heavy equipment. It must make payments of $5000 at the end of every month to settle the loan. Construct the Partial Amortization details and schedule for: (i) The First two payments. (ii) The Last two payments. (iii) The Total payment made and interest paid. Payment Amount Paid Interest Portion # (PMT) (INT) Principal Portion (PRN) Periodic 0 INT = BAL ((1+i) CY/PY − 1) PRN = PMT-INT Principal Balan (BAL) Initial Princip Payment 1 2 Totals
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