Use Excel to solve this problem. An $11,000 mortgage has a 30-year term and a 6% nominal interest rate. (a) What is the monthly payment? (b) After the first year of payments, what is the outstanding balance? (c) How much interest is paid in Month 13? How much principal?

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Amortized Loans

The term "amortization" refers to spreading the value of a loan or a debt over a series of regular payments or installments comprising of both the principal and interest amount. It generally involves the process where in the value of a loan or an intangible asset is written down over its maturity period.