In: Accounting
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
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)