Describe the procedure used to amortizebloan into a series of equal payments. What is loan amortization schedule?

Loan amortization is the process of spreading out a loan into a series of equal payments over a set period of time. This is typically done for loans with fixed interest rates, such as mortgages or car loans.

To amortize a loan, the total loan amount is divided by the number of payments to determine the size of each payment. A portion of each payment goes towards paying off the principal amount of the loan, while the remainder goes towards paying off the interest.

The loan amortization schedule is a table that outlines each payment, showing how much of each payment goes towards the principal and how much goes towards the interest. It also shows the remaining balance of the loan after each payment is made.

The schedule typically includes the payment number, the total payment amount, the amount of interest paid, the amount of principal paid, and the remaining balance of the loan. This allows borrowers to see how their payments are reducing the loan balance over time.

Overall, the loan amortization schedule helps borrowers understand how their loan payments are structured and how much of each payment goes towards paying off the loan principal.