Question

Question 2 of 5 Shelby had a loan of $135,000 and made payments of $2,500 at the end of every month to settle it. If he received the loan at 2.52% compounded monthly, what was the balance on the loan at the end of three years? $52,202.55 Round to the nearest cent Next Question

Answer 1

Solution:

Outstanding Loan Amount = $135,000

Monthly Installment = $2,500

Annual Interest Rate = 2.52%

Month	Opening Balance $	Monthly Interest $= (2.52/100 * 1/12 * Opening Balance)	Monthly Installment $	Closing Balance $ = Opening Balance + Monthly Interest - Monthly Installment
1	1,35,000.00	283.50	2,500.00	1,32,783.50
2	1,32,783.50	278.85	2,500.00	1,30,562.35
3	1,30,562.35	274.18	2,500.00	1,28,336.53
4	1,28,336.53	269.51	2,500.00	1,26,106.03
5	1,26,106.03	264.82	2,500.00	1,23,870.86
6	1,23,870.86	260.13	2,500.00	1,21,630.98
7	1,21,630.98	255.43	2,500.00	1,19,386.41
8	1,19,386.41	250.71	2,500.00	1,17,137.12
9	1,17,137.12	245.99	2,500.00	1,14,883.11
10	1,14,883.11	241.25	2,500.00	1,12,624.36
11	1,12,624.36	236.51	2,500.00	1,10,360.87
12	1,10,360.87	231.76	2,500.00	1,08,092.63
13	1,08,092.63	226.99	2,500.00	1,05,819.63
14	1,05,819.63	222.22	2,500.00	1,03,541.85
15	1,03,541.85	217.44	2,500.00	1,01,259.29
16	1,01,259.29	212.64	2,500.00	98,971.93
17	98,971.93	207.84	2,500.00	96,679.77
18	96,679.77	203.03	2,500.00	94,382.80
19	94,382.80	198.20	2,500.00	92,081.00
20	92,081.00	193.37	2,500.00	89,774.37
21	89,774.37	188.53	2,500.00	87,462.90
22	87,462.90	183.67	2,500.00	85,146.57
23	85,146.57	178.81	2,500.00	82,825.38
24	82,825.38	173.93	2,500.00	80,499.31
25	80,499.31	169.05	2,500.00	78,168.36
26	78,168.36	164.15	2,500.00	75,832.51
27	75,832.51	159.25	2,500.00	73,491.76
28	73,491.76	154.33	2,500.00	71,146.10
29	71,146.10	149.41	2,500.00	68,795.50
30	68,795.50	144.47	2,500.00	66,439.97
31	66,439.97	139.52	2,500.00	64,079.50
32	64,079.50	134.57	2,500.00	61,714.06
33	61,714.06	129.60	2,500.00	59,343.66
34	59,343.66	124.62	2,500.00	56,968.29
35	56,968.29	119.63	2,500.00	54,587.92
36	54,587.92	114.63	2,500.00	52,202.55

Therefore, the balance of the loan at the end of 3 years will be $52,202.55