Question

1) Lilly agreed to repay a loan of $21,000 with payments of $500 per month. Using an interest rate of j₁₂=3.6%, calculate the amount of principal repaid during the second year of the loan.

2) Ace Industries borrowed $150,000 amortized over 10 years at a rate of j₁₂=4.8% with monthly payments (rounded up to the next cent). Calculate their final payment.

Answer 1

Question 1

Lilly loan amount	21000
Interest Rate	3.60%
Monthly Intereest Rate	0.30%
Year	3.75
Period	45
EMI	$500.00
Months	Beginning	PMT	Interest	Principal	Ending balance
1	21,000.00	$500.00	63	437.00	20,937.00
2	20,563.00	$500.00	62	$438.31	20,501.31
3	20,124.69	$500.00	60	$439.63	20,064.31
4	19,685.06	$500.00	59	$440.94	19,626.01
5	19,244.12	$500.00	58	$442.27	19,186.39
6	18,801.85	$500.00	56	$443.59	18,745.45
7	18,358.26	$500.00	55	$444.93	18,303.18
8	17,913.33	$500.00	54	$446.26	17,859.59
9	17,467.07	$500.00	52	$447.60	17,414.67
10	17,019.47	$500.00	51	$448.94	16,968.41
11	16,570.53	$500.00	50	$450.29	16,520.82
12	16,120.24	$500.00	48	$451.64	16,071.88
13	15,668.60	$500.00	47	$452.99	15,621.60
14	15,215.61	$500.00	46	$454.35	15,169.96
15	14,761.26	$500.00	44	$455.72	14,716.97
16	14,305.54	$500.00	43	$457.08	14,262.62
17	13,848.46	$500.00	42	$458.45	13,806.91
18	13,390.00	$500.00	40	$459.83	13,349.83
19	12,930.17	$500.00	39	$461.21	12,891.38
20	12,468.96	$500.00	37	$462.59	12,431.55
21	12,006.37	$500.00	36	$463.98	11,970.35
22	11,542.39	$500.00	35	$465.37	11,507.76
23	11,077.01	$500.00	33	$466.77	11,043.78
24	10,610.25	$500.00	32	$468.17	10,578.42
25	10,142.08	$500.00	30	$469.57	10,111.65
26	9,672.50	$500.00	29	$470.98	9,643.49
27	9,201.52	$500.00	28	$472.40	9,173.92
28	8,729.13	$500.00	26	$473.81	8,702.94
29	8,255.31	$500.00	25	$475.23	8,230.55
30	7,780.08	$500.00	23	$476.66	7,756.74
31	7,303.42	$500.00	22	$478.09	7,281.51
32	6,825.33	$500.00	20	$479.52	6,804.85
33	6,345.80	$500.00	19	$480.96	6,326.77
34	5,864.84	$500.00	18	$482.41	5,847.25
35	5,382.44	$500.00	16	$483.85	5,366.29
36	4,898.58	$500.00	15	$485.30	4,883.89
37	4,413.28	$500.00	13	$486.76	4,400.04
38	3,926.52	$500.00	12	$488.22	3,914.74
39	3,438.30	$500.00	10	$489.69	3,427.98
40	2,948.61	$500.00	9	$491.15	2,939.77
41	2,457.46	$500.00	7	$492.63	2,450.09
42	1,964.83	$500.00	6	$494.11	1,958.94
43	1,470.73	$500.00	4	$495.59	1,466.31
44	975.14	$500.00	3	$497.07	972.21
45	478.06	$500.00	1	$498.57	476.63

In the 2nd year, principal payment would be $5526.53. add the 13th period to 24th period principle part

Question 2

Amount Borrowed		150000
Interest Rate		4.80%
Monthly Interest Rate	4.8/12=	0.40%
Year		10
Period	10*12=	120
PMT		1576
Final Payment	1576*12=	189163