Prepare an amortization schedule for a three-year loan of $60,000. The interest rate is 9 percent per year, and the loan calls for equal annual payments. How much total interest is paid over the life of the loan

Using the excel formula to calculate the yearly payment we calculate the amount which is 23,703.29. Base in this information we proceed to prepare the amortization schedule:

Period Initial amount Amortización Interest Payment Final Amount

1 60,000.00 18,303.29 5,400.00 23,703.29 41,696.71

2 41,696.71 19,950.58 3,752.70 23,703.29 21,746.13

3 21,746.13 21,746.13 1,957.15 23,703.29 -

The total interest paid is $ 11,109.86