How do these values change for the second payment? The portion of the payment that is applied to interest declines, while the portion of the payment that is applied to principal increases. The portion of the payment that is applied to interest increases, while the portion of the payment that is applied to principal decreases.

Each payment for January will receive a dollar amount of $1,204

$750 is the total Interest amount included in the first payment

Repayment of principal amount is shown in below mentioned table.

Period Beginning balance Payment Interest Payment of principal Ending Balance

1 15,000 1,204 750 454 14,546

2 14,546 1,204 727 476 14,070

3 14,070 1,204 704 500 13,570

4 13,570 1,204 678 525 13,045

5 13,045 1,204 652 551 12,493

6 12,493 1,204 625 579 11,914

7 11,914 1,204 596 608 11,306

8 11,306 1,204 565 638 10,668

9 10,668 1,204 533 670 9,998

10 9,998 1,204 500 704 9,294

11 9,294 1,204 465 739 8,555

12 8,555 1,204 428 776 7,779

13 7,779 1,204 389 815 6,965

14 6,965 1,204 348 855 6,109

15 6,109 1,204 305 898 5,211

16 5,211 1,204 261 943 4,268

17 4,268 1,204 213 990 3,278

18 3,278 1,204 164 1,040 2,238

19 2,238 1,204 112 1,092 1,146

20 1,146 1,204 57 1,146 0

The portion of the payment that is applied to interest declines, while the portion of the payment that is applied to principal increases. Value change for second period is shown as under:

Period Beginning balance Payment Interest Payment of principal

1 15,000 1,203.65 750.00 453.65

2 14,546.35 1,203.65 727.32 476.33

Interest reported for first year is $1,477

No, interest will not be same next year.

As the loan is amortized (paid off), the beginning balance, hence the interest charge, declines and the repayment of principal increases