Question

example, if i-3.4567%, write your answer as 0.0346 A 1Ho Question 2 2 pts John borrows 9,500 that is to be paid back over 20 years with level monthly payments at the end of each month. The interest is charged on the loan at a nominal rate of 12% compounded monthly, What is the outstanding balance of the loan immediately after his 50th payment? Next Previous

Answer 1

Calculation of Equal Monthly Installments (Using Excel Function PMT):

where, rate = 12%/12

nper = 240 (20*12months)

pv = 9500

type = 0 (Payment at the end of each month)

EMI comes to $ 104.60

Repayment Schedule
Month	Opening balance	Interest	EMI	Ending Balance
1	9,500.00	95.00	104.60	9,490.40
2	9,490.40	94.90	104.60	9,480.70
3	9,480.70	94.81	104.60	9,470.90
4	9,470.90	94.71	104.60	9,461.01
5	9,461.01	94.61	104.60	9,451.01
6	9,451.01	94.51	104.60	9,440.92
7	9,440.92	94.41	104.60	9,430.73
8	9,430.73	94.31	104.60	9,420.43
9	9,420.43	94.20	104.60	9,410.03
10	9,410.03	94.10	104.60	9,399.53
11	9,399.53	94.00	104.60	9,388.92
12	9,388.92	93.89	104.60	9,378.21
13	9,378.21	93.78	104.60	9,367.39
14	9,367.39	93.67	104.60	9,356.46
15	9,356.46	93.56	104.60	9,345.42
16	9,345.42	93.45	104.60	9,334.27
17	9,334.27	93.34	104.60	9,323.01
18	9,323.01	93.23	104.60	9,311.64
19	9,311.64	93.12	104.60	9,300.15
20	9,300.15	93.00	104.60	9,288.55
21	9,288.55	92.89	104.60	9,276.83
22	9,276.83	92.77	104.60	9,264.99
23	9,264.99	92.65	104.60	9,253.04
24	9,253.04	92.53	104.60	9,240.97
25	9,240.97	92.41	104.60	9,228.78
26	9,228.78	92.29	104.60	9,216.46
27	9,216.46	92.16	104.60	9,204.02
28	9,204.02	92.04	104.60	9,191.46
29	9,191.46	91.91	104.60	9,178.77
30	9,178.77	91.79	104.60	9,165.95
31	9,165.95	91.66	104.60	9,153.01
32	9,153.01	91.53	104.60	9,139.94
33	9,139.94	91.40	104.60	9,126.73
34	9,126.73	91.27	104.60	9,113.40
35	9,113.40	91.13	104.60	9,099.93
36	9,099.93	91.00	104.60	9,086.32
37	9,086.32	90.86	104.60	9,072.58
38	9,072.58	90.73	104.60	9,058.71
39	9,058.71	90.59	104.60	9,044.69
40	9,044.69	90.45	104.60	9,030.54
41	9,030.54	90.31	104.60	9,016.24
42	9,016.24	90.16	104.60	9,001.80
43	9,001.80	90.02	104.60	8,987.21
44	8,987.21	89.87	104.60	8,972.48
45	8,972.48	89.72	104.60	8,957.60
46	8,957.60	89.58	104.60	8,942.57
47	8,942.57	89.43	104.60	8,927.40
48	8,927.40	89.27	104.60	8,912.07
49	8,912.07	89.12	104.60	8,896.59
50	8,896.59	88.97	104.60	8,880.95

Amount outstanding after the payment of 50th installment comes to $ 8,880.95