Question

A loan of ​$23372337 borrowed today is to be repaid in three equal installments due in one-and-a-half years​, three-and-a-half ​years, and six ​years, respectively. What is the size of the equal installments if money is worth 5.3 % compounded semi annually?

Answer 1

PV= C0+ CF1/(1+r)^1 + CF2/(1+r)^2 …………CFn/(1+r)^n

23372337 = X/(1+5.3%/2)^3 + X/(1+5.3%/2)^7+X/(1+5.3%/2)^12

23372337 = 0.924535X+0.832698X+0.730622X

23372337= 2.487854X

X=9394578

Amount of equal instalment = 9394578