Practice prompt · Q:time-value-of-money-and-financial-mathematics/loan-schedule-row-001

Build one row of a level-payment schedule

Tests whether the learner splits a level payment into interest on the opening balance and principal.

Updated Sep 10, 2026 Review due Nov 18, 2026

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A loan opens the year at 240,000 with an annual rate of 7 percent and a level annual payment of 34,000.

Every row runs in the same order. Interest on what was owed at the start, principal as the remainder of the payment, then a smaller balance to open the next row. Because the balance falls, the interest share falls and the principal share rises for the life of the loan.

Choose the best answer. a Interest 16,800, principal 17,200, closing balance 222,800. b Interest 17,200, principal 16,800, closing balance 223,200. c Interest 16,800, principal 34,000, closing balance 206,000. d Interest 15,596, principal 18,404, closing balance 221,596.

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Answer: a

Choice a. Interest 16,800, principal 17,200, closing balance 222,800.