Semi-annual Loan Payment
Loan Amount (P) = $145,750 [$182,188 x 80%]
Semi-annual Interest Rate (n) = 3% [6% x ½]
Number of period (n) = 6 Periods [3 Years x 2]
Semi-annual Loan Payment = P x {r (1+r)n} ] / [( 1+r)n – 1]
= [$145,750 x {0.03 x (1 + 0.03)6}] / [(1 + 0.03)3 – 1]
= [$145,750 x {0.03 x 1.194052}] / [1.194052 – 1]
= [$145,750 x 0.035821] / 0.194052
= $5,220.99 / 0.194052
= $26,905 per each semi-annual period
Loan Amortization Table
Payment |
Beginning Amount |
Payment |
Interest Paid at 3% |
Repayment of Principal |
Ending Balance |
1 |
$1,45,750 |
$26,905 |
$4,373 |
$22,533 |
$1,23,218 |
2 |
$1,23,218 |
$26,905 |
$3,697 |
$23,208 |
$1,00,009 |
3 |
$1,00,009 |
$26,905 |
$3,000 |
$23,905 |
$76,104 |
4 |
$76,104 |
$26,905 |
$2,283 |
$24,622 |
$51,482 |
5 |
$51,482 |
$26,905 |
$1,544 |
$25,361 |
$26,122 |
6 |
$26,122 |
$26,905 |
$783 |
$26,122 |
$0 |
TOTAL |
$1,61,430 |
$15,680 |
$1,45,750 |
$0 |
|
Interest payment is calculated at 3% on the beginning balance of the loan.
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