Creating an Amortization Schedule Worksheet With Answers - Tutoring and Learning Centre, George Brown College

Creating an Amortization Schedule Worksheet With Answers is for tutoring and learning purposes at the Tutoring and Learning Centre of George Brown College. It helps students understand and practice calculating loan payments and interest over time.

FAQ

Q: What is an amortization schedule?
A: An amortization schedule is a table that shows the breakdown of each payment over the life of a loan.

Q: Why is an amortization schedule important?
A: An amortization schedule helps borrowers understand how their loan payments are applied to both interest and principal.

Q: What does an amortization schedule worksheet include?
A: An amortization schedule worksheet includes the loan amount, interest rate, loan term, payment amount, and the remaining balance after each payment.

Q: What does an amortization schedule show?
A: An amortization schedule shows the amount applied to principal, interest, and the remaining balance for each payment.

Q: How can I use an amortization schedule worksheet?
A: You can use an amortization schedule worksheet to plan your loan payments, figure out the total interest paid, or determine the impact of extra payments.

Q: Is an amortization schedule the same as a loan payoff calculator?
A: No, an amortization schedule shows the breakdown of each payment, while a loan payoff calculator helps determine the time it takes to pay off a loan based on different payment amounts.

Q: Can I change the payment frequency on an amortization schedule worksheet?
A: Yes, you can customize the payment frequency on an amortization schedule worksheet to match your payment schedule (e.g., monthly, bi-weekly, etc.).

Q: What happens if I miss a payment on my loan?
A: If you miss a payment on your loan, it can result in late fees, additional interest, and impact your credit score. It is important to make your payments on time.