Amortization Quiz 17

An amortisation schedule answers the question a monthly payment hides: of what you just paid, how much was interest and how much actually reduced the debt. This quiz builds those schedules - the equal-payment (Spitzer) loan and the equal-principal loan - and compares them. It covers finding the payment, splitting any row into interest and principal, the balance outstanding after a given year, and the total interest paid over the life of the loan. The two structures cost different amounts. Knowing which is which is the point. Part of a full finance course. More quizzes and worked examples on the channel.