A loan is taken out for $25,000 from ACME Credit Union at 9% APR, compounded monthly....

A loan is taken out for $25,000 from ACME Credit Union at 9% APR, compounded monthly. The loan is to be repaid in equal monthly payments over a 5-year period.

Find the:

1) loan payment amount,

2) interest payment in the 25th period,

3) principal payment in the 25th period,

4) the unpaid principle after the 25th payment,

5) and the loan pay-off amount at the end of the 25th period

Expert Solution

Period	Opening	Interest	Payment	Closing
1	25000	187.5	518.96	24668.54
2	24668.54	185.01	518.96	24334.5941
3	24334.59	182.51	518.96	23998.1435
4	23998.14	179.99	518.96	23659.1696
5	23659.17	177.44	518.96	23317.6534
6	23317.65	174.88	518.96	22973.5758
7	22973.58	172.30	518.96	22626.9176
8	22626.92	169.70	518.96	22277.6595
9	22277.66	167.08	518.96	21925.7819
10	21925.78	164.44	518.96	21571.2653
11	21571.27	161.78	518.96	21214.0898
12	21214.09	159.11	518.96	20854.2354
13	20854.24	156.41	518.96	20491.6822
14	20491.68	153.69	518.96	20126.4098
15	20126.41	150.95	518.96	19758.3979
16	19758.4	148.19	518.96	19387.6259
17	19387.63	145.41	518.96	19014.0731
18	19014.07	142.61	518.96	18637.7186
19	18637.72	139.78	518.96	18258.5415
20	18258.54	136.94	518.96	17876.5206
21	17876.52	134.07	518.96	17491.6345
22	17491.63	131.19	518.96	17103.8617
23	17103.86	128.28	518.96	16713.1807
24	16713.18	125.35	518.96	16319.5695
25	16319.57	122.40	518.96	15923.0063
26	15923.01	119.42	518.96	15523.4689
27	15523.47	116.43	518.96	15120.9349
28	15120.93	113.41	518.96	14715.3819
29	14715.38	110.37	518.96	14306.7873
30	14306.79	107.30	518.96	13895.1282
31	13895.13	104.21	518.96	13480.3816
32	13480.38	101.10	518.96	13062.5245
33	13062.52	97.97	518.96	12641.5334
34	12641.53	94.81	518.96	12217.3849
35	12217.38	91.63	518.96	11790.0553
36	11790.06	88.43	518.96	11359.5207
37	11359.52	85.20	518.96	10925.7571
38	10925.76	81.94	518.96	10488.7403
39	10488.74	78.67	518.96	10048.4459
40	10048.45	75.36	518.96	9604.84919
41	9604.849	72.04	518.96	9157.92556
42	9157.926	68.68	518.96	8707.65
43	8707.65	65.31	518.96	8253.99738
44	8253.997	61.90	518.96	7796.94236
45	7796.942	58.48	518.96	7336.45943
46	7336.459	55.02	518.96	6872.52287
47	6872.523	51.54	518.96	6405.1068
48	6405.107	48.04	518.96	5934.1851
49	5934.185	44.51	518.96	5459.73148
50	5459.731	40.95	518.96	4981.71947
51	4981.719	37.36	518.96	4500.12237
52	4500.122	33.75	518.96	4014.91328
53	4014.913	30.11	518.96	3526.06513
54	3526.065	26.45	518.96	3033.55062
55	3033.551	22.75	518.96	2537.34225
56	2537.342	19.03	518.96	2037.41232
57	2037.412	15.28	518.96	1533.73291
58	1533.733	11.50	518.96	1026.27591
59	1026.276	7.70	518.96	515.012977
60	515.013	3.86	518.96	-0.0844253
		6138	31138

a. Loan Payment Amount = $ 31138

b. Interest Payment in 25th period = $ 122.40

c. Principal Payment in 25th period = $ 396.56 ( 518.96 - 122.40)

d. Unpaid Principal Amount after the 25th payment = $ 15923

e. Loan Pay off Amount at the end of 25th period = $ 18163.60 (Calculating sum of payments to be made from 26th period till 60th) (518.96 * 35)

ekkarill92 answered 5 months ago

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