Build a checked amortization schedule
See this course’s project requirements
A checked amortization schedule and loan-offer comparison separating cash received, interest, fees, total cost and early-payment rules.
Keep your working files in your own notebook or software. Save a private description, checklist, and work link in My Proof.
What to include
- A loan-proceeds comparison with a funding-gap calculation and disclosure questions.
- A checked one-period payment allocation and principal roll-forward.
- A four-period amortization table with final payoff and total-interest checks.
- A term/cost/affordability scorecard for comparable loan offers.
- An extra-payment scenario with principal application and prepayment questions.
- A borrowing-or-wait decision brief with a savings path, cost and review trigger.
Review and revise
Use these criteria to check your work and choose what to improve.
- All supplied records reconcile and the decision uses the named case rules.
- Calculations show units, intermediate values and a second check.
- Changed-input practice revises the affected result and identifies uncertainty.
- The final project combines six lesson records, separates fictional assumptions from current rules, and states a supported next step.
Want more background?
The idea in everyday life
This is an original fictional practice case. No account, payment, personal record or outside participation is required. $1,000 initial principal, 1% monthly, $260 regular end-month payment. Round each interest to cents. Months 1–3 close at $750.00, $497.50, $242.48.
Carry the previous closing principal into the next period and cap the final payment at the amount actually due.
Build a checked amortization schedule — worked practice
Carry the previous closing principal into the next period and cap the final payment at the amount actually due.
Use paper or a local table; label all amounts as fictional USD unless the case names another unit. $1,000 initial principal, 1% monthly, $260 regular end-month payment. Round each interest to cents. Months 1–3 close at $750.00, $497.50, $242.48.
Loan contract inputs
Paste at A1.
| AInput | BValue |
|---|---|
| Opening principal USD | 1000 |
| Monthly interest decimal | 0.01 |
| Regular payment USD | 260 |
| Interest rounding | Nearest cent each period |
Copy as plain text
1. Step 1: Reproduce month 1 from opening debt
Draw Month, Opening principal, Interest, Payment and Closing principal columns. Month 1 interest is Opening×0.01 rounded to cents; closing is Opening+Interest−Payment.
You should see: Interest $10.00, payment $260, closing $750.
Carry the previous closing principal into the next period and cap the final payment at the amount actually due.
2. Step 2: Carry the prior closing into month 2
Copy month 1 closing into month 2 opening. Repeat the same interest and roll-forward formulas; never reuse original principal after month 1.
You should see: Interest $7.50; closing $497.50.
Keep this intermediate result so the final decision can be checked.
3. Step 3: Compute month 3 with cent rounding
Repeat for month 3. Round the $4.975 interest to $4.98 before calculating closing principal; record the chosen cent-rounding rule.
You should see: Interest $4.98; closing $242.48.
Keep this intermediate result so the final decision can be checked.
4. Step 4: Calculate the final amount and total interest
For month 4, calculate interest on remaining principal and make the final payment equal principal+interest. Add all payments and subtract the initial principal as a separate total-interest check.
You should see: Month 4 interest $2.42; final payment $244.90; total interest $24.90 and payments $1,024.90.
Keep this intermediate result so the final decision can be checked.
What to finish
A four-period amortization table with final payoff and total-interest checks.
Watch for this
Reusing original principal as each month’s interest base.
How can I tell I understand it?
Build a linked cent-rounded amortization schedule and calculate the exact final payment on a new supplied case, with a visible intermediate check and no unsupported real-world promise.
Quick knowledge check
Answer all 3 questions. Get at least 2 right and the lesson completes automatically.
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Answer all 3 questions above and get at least 2 right. You can review the explanations and try again.
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Sources and further reading
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Source & access notes · checked 2026-10-01
Official page opened/read during Money expansion authoring; checked the relevant concept and access state. These sources do not establish funding eligibility.
Access: Readable official webpage inspected with the web reader on 2026-10-01. No interactive-tool operation is claimed.
Reuse: Original fictional practice, questions and calculations; paraphrased concepts with a source link. No source exercise copied.
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