"AMORTIZATION, CONSTRUCTING AMORTIZATION SCHEDULE. An INTEREST BEARING DEBT is said to be AMORTIZED when all liabilities which include the principal and interest are discharged by a sequence of usually equalpayments. An AMORTIZATION SCHEDULE is a table which shows the distribution of each payment. ANNRATE% is the nominal annual interest rate. NUMYEARS is the term in years. PAYMNINT is the payment interval in months. PERPAYMN is the periodic payment. VALUDEBT is the debt's value. OUTSTPR is the value of debt at the start of period PERIOD#. INTDUE is the interest due at the end of the period. REPAIDPR is the repaid principal at the end of the period. PERIOD OUTSTND PRINC INT DUE PAYMENT PRINCIPAL at beginning at end REPAID (end) 1 $5000 $250 $1410.06 $1160.06 2 3839.94 192 1410.06 1218.06 3 2621.88 131.07 1410.06 1278.97 4 1342.91 67.15 1410.06 1342.91 *** Answers to problems *** (c) PCSCC, Inc., 1993(a) Set ANNRATE%=10, NUMYEARS=2, PAYMNINT=6 (semiannual=6 mo), PERIOD#=1, VALUDEBT=5,000. Then set PERIOD#= 2, 3 and 4. Table is shown above. Type any key to exit. ||(a) Construct an amortization schedule for the 4 periodic payments (2 year term) required to amortize a $5000 loan at 10% annual interest,compounded semiannually, if the first payment is due in 6 months. Type comma key to see answers. Type (F2) to return to application file."
