Question

Amortize a 30-year, $120,000 loan with end-of-month payments. The APR is 12%. What is the monthly payment? What are the interest and repayment portions of the payment in month 12? What is the ending balance after one year (month 12)?  

Answer 1

Ans Monthly Payment = $ 1234.34

Interest in Month 12 = $ 1196.03

Repayment in Month 12 = $ 38.31

Ending Balance after one year (12 months) = $ 119,564.54

	P =	Regular Payments
	PV =	Loan Amount
	r =	rate of interest
	n =	no of periods
	P =	r (PV)
		1 - (1 + r )-n
	P =	(12%/12)*120000
		1 - (1 / (1 + 12%/12)^360))
	P =	1200
		0.972183311
	P =	1234.34
	Beginning Balance	Interest	Principal	Ending Balance
1	$120,000.00	$1,200.00	$34.34	$119,965.66
2	$119,965.66	$1,199.66	$34.68	$119,930.99
3	$119,930.99	$1,199.31	$35.03	$119,895.96
4	$119,895.96	$1,198.96	$35.38	$119,860.59
5	$119,860.59	$1,198.61	$35.73	$119,824.86
6	$119,824.86	$1,198.25	$36.09	$119,788.77
7	$119,788.77	$1,197.89	$36.45	$119,752.32
8	$119,752.32	$1,197.52	$36.81	$119,715.51
9	$119,715.51	$1,197.16	$37.18	$119,678.33
10	$119,678.33	$1,196.78	$37.55	$119,640.78
11	$119,640.78	$1,196.41	$37.93	$119,602.85
12	$119,602.85	$1,196.03	$38.31	$119,564.54