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The amortization schedule for a loan is provided below. Using the table, determine the total amount of...

3. The amortization schedule for a loan is provided below. Using the table, determine the total amount of interest charged on the loan.
Payment Number | Payment | Interest for Period | Portion Applied to Principal | Principal at End of Period
0 | - | - | - | $1,250.00
1 | $315.11 | $4.17 | $310.94 | $939.06
2 | $315.11 | $3.13 | $311.98 | $627.08
3 | $315.11 | $2.09 | $313.02 | $314.06
4 | $315.11 | $1.05 | $314.06 | $0.00
$1.05
$314.06
$1,880.20
$10.44

Answer

Total Interest Charged: To find the total interest charged, sum up the 'Interest for Period' values:

  1. Payment 1: $4.17
  2. Payment 2: $3.13
  3. Payment 3: $2.09
  4. Payment 4: $1.05

Total Interest = $4.17 + $3.13 + $2.09 + $1.05 = $10.44

The correct answer is $10.44.

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