Answer:
To prepare an amortization schedule, we need to know the following information:
- Total loan amount: $30,000
- Interest rate: 3% per year
- Loan term: 18 months
- Payment frequency: monthly
To calculate the monthly payment, we can use the formula for the present value of an annuity:
PMT = P * (r/12) / (1 - (1 + r/12)^(-n))
where PMT is the monthly payment, P is the loan amount, r is the monthly interest rate (which is the annual interest rate divided by 12), and n is the total number of payments.
Using the above information, we can calculate the monthly payment as follows:
PMT = 30,000 * (0.03/12) / (1 - (1 + 0.03/12)^(-18)) = $1,742.27
So Phada's monthly payment will be $1,742.27 for the next 18 months. To prepare the table of schedule for the next 12 months, we need to calculate the breakdown of each monthly payment into principal and interest.
Month | Payment | Interest | Principal | Balance
------|---------|----------|-----------|--------
1 | $1,742.27 | $75.00 | $1,667.27 | $28,332.73
2 | $1,742.27 | $70.83 | $1,671.44 | $26,661.29
3 | $1,742.27 | $66.66 | $1,675.61 | $24,985.68
4 | $1,742.27 | $62.49 | $1,679.78 | $23,305.90
5 | $1,742.27 | $58.32 | $1,683.95 | $21,621.95
6 | $1,742.27 | $54.15 | $1,688.12 | $19,933.83
7 | $1,742.27 | $49.98 | $1,692.29 | $18,241.54
8 | $1,742.27 | $45.81 | $1,696.46 | $16,545.07
9 | $1,742.27 | $41.64 | $1,700.63 | $14,844.44
10 | $1,742.27 | $37.47 | $1,704.80 | $13,139.64
11 | $1,742.27 | $33.30 | $1,708.97 | $11,430.67
12 | $1,742.27 | $29.13 | $1,713.14 | $9,717.53
In each month, the interest is calculated as the current balance multiplied by the monthly interest rate (which is 3% divided by 12), and the principal is calculated as the monthly payment minus the interest. The balance is calculated as the previous balance minus the principal.