Homework Answers
Instalment = Loan / PVAF(r%,n)
= $ 400,000 / PVAF(11%,25)
= 400000 / 8.4217
= 47496.10
Loan Amortization:
| Year | Opening Bal | Instalment | Int | Principal Repay | Closing Bal |
| 1 | $ 4,00,000.00 | $ 47,496.10 | $ 44,000.00 | $ 3,496.10 | $ 3,96,503.90 |
| 2 | $ 3,96,503.90 | $ 47,496.10 | $ 43,615.43 | $ 3,880.67 | $ 3,92,623.24 |
| 3 | $ 3,92,623.24 | $ 47,496.10 | $ 43,188.56 | $ 4,307.54 | $ 3,88,315.69 |
| 4 | $ 3,88,315.69 | $ 47,496.10 | $ 42,714.73 | $ 4,781.37 | $ 3,83,534.32 |
| 5 | $ 3,83,534.32 | $ 47,496.10 | $ 42,188.78 | $ 5,307.32 | $ 3,78,227.00 |
| 6 | $ 3,78,227.00 | $ 47,496.10 | $ 41,604.97 | $ 5,891.13 | $ 3,72,335.88 |
| 7 | $ 3,72,335.88 | $ 47,496.10 | $ 40,956.95 | $ 6,539.15 | $ 3,65,796.73 |
| 8 | $ 3,65,796.73 | $ 47,496.10 | $ 40,237.64 | $ 7,258.46 | $ 3,58,538.27 |
| 9 | $ 3,58,538.27 | $ 47,496.10 | $ 39,439.21 | $ 8,056.89 | $ 3,50,481.38 |
| 10 | $ 3,50,481.38 | $ 47,496.10 | $ 38,552.95 | $ 8,943.14 | $ 3,41,538.24 |
| 11 | $ 3,41,538.24 | $ 47,496.10 | $ 37,569.21 | $ 9,926.89 | $ 3,31,611.35 |
| 12 | $ 3,31,611.35 | $ 47,496.10 | $ 36,477.25 | $ 11,018.85 | $ 3,20,592.50 |
| 13 | $ 3,20,592.50 | $ 47,496.10 | $ 35,265.17 | $ 12,230.92 | $ 3,08,361.58 |
| 14 | $ 3,08,361.58 | $ 47,496.10 | $ 33,919.77 | $ 13,576.32 | $ 2,94,785.25 |
| 15 | $ 2,94,785.25 | $ 47,496.10 | $ 32,426.38 | $ 15,069.72 | $ 2,79,715.53 |
| 16 | $ 2,79,715.53 | $ 47,496.10 | $ 30,768.71 | $ 16,727.39 | $ 2,62,988.15 |
| 17 | $ 2,62,988.15 | $ 47,496.10 | $ 28,928.70 | $ 18,567.40 | $ 2,44,420.74 |
| 18 | $ 2,44,420.74 | $ 47,496.10 | $ 26,886.28 | $ 20,609.81 | $ 2,23,810.93 |
| 19 | $ 2,23,810.93 | $ 47,496.10 | $ 24,619.20 | $ 22,876.89 | $ 2,00,934.04 |
| 20 | $ 2,00,934.04 | $ 47,496.10 | $ 22,102.74 | $ 25,393.35 | $ 1,75,540.68 |
| 21 | $ 1,75,540.68 | $ 47,496.10 | $ 19,309.48 | $ 28,186.62 | $ 1,47,354.06 |
| 22 | $ 1,47,354.06 | $ 47,496.10 | $ 16,208.95 | $ 31,287.15 | $ 1,16,066.91 |
| 23 | $ 1,16,066.91 | $ 47,496.10 | $ 12,767.36 | $ 34,728.74 | $ 81,338.17 |
| 24 | $ 81,338.17 | $ 47,496.10 | $ 8,947.20 | $ 38,548.90 | $ 42,789.28 |
| 25 | $ 42,789.28 | $ 47,496.10 | $ 4,706.82 | $ 42,789.28 | $ -0.00 |
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