Question

please use HP 10bll financial calculator and type the steps to using the calculator

no excell please

Your firm has a loan on a piece of equipment. the loan was secured on January 1 and it is now December 31. you need to conpute the ineteres pain this year on his loan for rax ourposes. the loan was 80,000, it was a 10 year loan at 8% with monthly oayments. if you have made the first eleven payments, how much ineterst have you paid this year?

Answer 1

EMI = Loan / PVAF (r%, n)
PVAF = SUm [ PVF(r%, n) ]
PVF(r%, n) = 1 / ( 1 + r)^n
r = Int rate per period
n = No. of periods

= $ 80000 / PVAF ( 0.6667% , 120 )

= $ 80000 / 82.4215

= $ 970.62

Loan Amortization Schedule:

Month	Opening Bal	Instalment	Int	Principal Repay	Clsoing Bal
1	$ 80,000.00	$ 970.62	$    533.33	$ 437.29	$ 79,562.71
2	$ 79,562.71	$ 970.62	$    530.42	$ 440.20	$ 79,122.51
3	$ 79,122.51	$ 970.62	$    527.48	$ 443.14	$ 78,679.37
4	$ 78,679.37	$ 970.62	$    524.53	$ 446.09	$ 78,233.28
5	$ 78,233.28	$ 970.62	$    521.56	$ 449.07	$ 77,784.22
6	$ 77,784.22	$ 970.62	$    518.56	$ 452.06	$ 77,332.16
7	$ 77,332.16	$ 970.62	$    515.55	$ 455.07	$ 76,877.08
8	$ 76,877.08	$ 970.62	$    512.51	$ 458.11	$ 76,418.98
9	$ 76,418.98	$ 970.62	$    509.46	$ 461.16	$ 75,957.82
10	$ 75,957.82	$ 970.62	$    506.39	$ 464.24	$ 75,493.58
11	$ 75,493.58	$ 970.62	$    503.29	$ 467.33	$ 75,026.25
Int Paid for 11 Months	$ 5,703.08

Pls do rate, if the answer is correct and comment, if any further assistance is required.