Homework Answers
The following payment schedule is prepared as per given data:
|
Year (A) |
Opening Outstanding amount (B) | Interest
@7% (c ) |
Installment Paid (D) | Closing Outstanding (E)= B+C-D |
| 1 | 6000.0000 | 420.0000 | 600.0000 | 5820.0000 |
| 2 | 5820.0000 | 407.4000 | 600.0000 | 5627.4000 |
| 3 | 5627.4000 | 393.9180 | 600.0000 | 5421.3180 |
| 4 | 5421.3180 | 379.4923 | 600.0000 | 5200.8103 |
| 5 | 5200.8103 | 364.0567 | 600.0000 | 4964.8670 |
| 6 | 4964.8670 | 347.5407 | 600.0000 | 4712.4077 |
| 7 | 4712.4077 | 329.8685 | 600.0000 | 4442.2762 |
| 8 | 4442.2762 | 310.9593 | 600.0000 | 4153.2355 |
| 9 | 4153.2355 | 290.7265 | 600.0000 | 3843.9620 |
| 10 | 3843.9620 | 269.0773 | 600.0000 | 3513.0394 |
| 11 | 3513.0394 | 245.9128 | 600.0000 | 3158.9521 |
| 12 | 3158.9521 | 221.1266 | 600.0000 | 2780.0788 |
| 13 | 2780.0788 | 194.6055 | 600.0000 | 2374.6843 |
| 14 | 2374.6843 | 166.2279 | 600.0000 | 1940.9122 |
| 15 | 1940.9122 | 135.8639 | 600.0000 | 1476.7760 |
| 16 | 1476.7760 | 103.3743 | 600.0000 | 980.1504 |
| 17 | 980.1504 | 68.6105 | 600.0000 | 448.7609 |
| 18 | 448.7609 | 31.4133 | 480.1741 | 0.0000 |
As per above, the loan will be fully repaid in 18 Years and the Last payment will be paid of $ 480.1741
T= 18 years or say 17.800 Years
last payment= $ 480.1741
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