The starting principal of the loan based on the amortization schedule is $150,000 with periodic payments of $966.45, made up of both interest and debt repayment.
Arranging the amortization schedule properly as below shows that the balance after the first loan repayment is $149,783.55.
The repayment amount in the first period is $216.45.
When the loan balance after the first loan repayment is added to the first loan payment, it gives a total of $150,000 ($149,783.55 + 216.45), being the initial or starting loan principal.
Payment # Payment Interest Debt Payment Balance
1 966.45 750.00 216.45 149,783.55
2 966.45 748.92 217.53 149,566.01
3 966.45
y = Balance + Debt Payment for Period 1
= $150,000 ($149,783.55 + 216.45)
We can also compute the monthly interest rate as ¹/₂% ($750/$150,000 x 100), while the annual interest rate is 6% (12 x ¹/₂%).
Thus, the starting principal of the loan based on the amortization schedule is $150,000.
Learn more about Amortization Schedules at https://brainly.com/question/24576997
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