A loan of $ 100000 |
to be repaid annually over 36 years |
with varying interest rates of |
5% in Years 1 --12 |
6% in Years 12--24 & |
4% in Years 24--36 |
We calculate the principal balance at the end of 12 yrs. & find out the annuity amt. for the next 24 years--given the next varying rate of interest, ie. 6% p.a. |
Again, at end of the 24th year, with the principal balance,we find the annuity amt. for the balance 12 years calculated at the varying interest rate of 4% p.a. |
Loan Amortisation Table | ||||
No.of annual payment | PMT. | Tow. Int. | Tow. Princ. | Prin. Bal. |
0 | 100000 | |||
1 | 5300 | 5000 | 300 | 99700 |
2 | 5300 | 4985 | 315 | 99385 |
3 | 5300 | 4969 | 331 | 99054 |
4 | 5300 | 4953 | 347 | 98707 |
5 | 5300 | 4935 | 365 | 98342 |
6 | 5300 | 4917 | 383 | 97959 |
7 | 5300 | 4898 | 402 | 97557 |
8 | 5300 | 4878 | 422 | 97135 |
9 | 5300 | 4857 | 443 | 96692 |
10 | 5300 | 4835 | 465 | 96227 |
11 | 5300 | 4811 | 489 | 95738 |
12 | 5300 | 4787 | 513 | 95225 |
13 | 6250 | 5713 | 537 | 94688 |
14 | 6250 | 5681 | 569 | 94120 |
15 | 6250 | 5647 | 603 | 93517 |
16 | 6250 | 5611 | 639 | 92878 |
17 | 6250 | 5573 | 677 | 92201 |
18 | 6250 | 5532 | 718 | 91483 |
19 | 6250 | 5489 | 761 | 90721 |
20 | 6250 | 5443 | 807 | 89915 |
21 | 6250 | 5395 | 855 | 89060 |
22 | 6250 | 5344 | 906 | 88153 |
23 | 6250 | 5289 | 961 | 87192 |
24 | 6250 | 5232 | 1018 | 86174 |
25 | 9185 | 3447 | 5738 | 80436 |
26 | 9185 | 3217 | 5968 | 74468 |
27 | 9185 | 2979 | 6206 | 68262 |
28 | 9185 | 2730 | 6455 | 61808 |
29 | 9185 | 2472 | 6713 | 55095 |
30 | 9185 | 2204 | 6981 | 48114 |
31 | 9185 | 1925 | 7260 | 40853 |
32 | 9185 | 1634 | 7551 | 33302 |
33 | 9185 | 1332 | 7853 | 25449 |
34 | 9185 | 1018 | 8167 | 17282 |
35 | 9185 | 691 | 8494 | 8789 |
36 | 9185 | 352 | 8833 | -45 |
248820 | 148775 | 100045 | ||
(Rounding-off error) |
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