Homework Answers
Instalment = Loan / PVAF(r%, n)
= 12000 / PVAF (11.5%,4)
= 12000 / 3.0696
= 3909.29
Loan Amortization:
| Year | OB | Instalment | Int | Principal repay | CB |
| 1 | $ 12,000.00 | $ 3,909.29 | $ 1,380.00 | $ 2,529.29 | $ 9,470.71 |
| 2 | $ 9,470.71 | $ 3,909.29 | $ 1,089.13 | $ 2,820.15 | $ 6,650.56 |
| 3 | $ 6,650.56 | $ 3,909.29 | $ 764.81 | $ 3,144.47 | $ 3,506.09 |
| 4 | $ 3,506.09 | $ 3,909.29 | $ 403.20 | $ 3,506.09 | $ - |
Principal Repay in Last Year = 3506.09
Int paid Last year = 403.20
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