Question

1. Find the unpaid balance on the debt. (Round your answer to the nearest cent.)

After 5 years of monthly payments on $150,000 at 3% for 25 years.

2. Determine the payment to amortize the debt. (Round your answer to the nearest cent.)

Quarterly payments on $11,500 at 3.6% for 6 years.

$

3. Determine the payment to amortize the debt. (Round your answer to the nearest cent.)

Monthly payments on $140,000 at 4% for 25 years.

$

Answer 1

1

Monthly payment is:

Monthly payment	=	[P * R * (1+R)^N ] / [(1+R)^N -1]
Using the formula:
Principle	P	1,50,000.00
Rate of interest per period:
Annual rate of interest		3.000%
Frequency of payment	=	Once in 1 month period
Numer of payments in a year	=	12/1 =	12
Rate of interest per period	R	0.03 /12 =	0.2500%
Total number of payments:
Frequency of payment	=	Once in 1 month period
Number of years of loan repayment	=	25
Total number of payments	N	25*12 =	300
Period payment using the formula	=	[ 150000*0.0025*(1+0.0025)^300] / [(1+0.0025 ^300 -1]
Monthly payment	=	711.32

Amortization statement for 5 years is:

Period	Opening liability	Interest expense	EMI Payment	Loan repaid/ (increase)	Closing liability
N	A	B= A* 0.002500	C	D=C-B	E=A-D
1	1,50,000.00	375.00	711.32	336.32	1,49,663.68
2	1,49,663.68	374.16	711.32	337.16	1,49,326.53
3	1,49,326.53	373.32	711.32	338.00	1,48,988.52
4	1,48,988.52	372.47	711.32	338.85	1,48,649.68
5	1,48,649.68	371.62	711.32	339.69	1,48,309.99
6	1,48,309.99	370.77	711.32	340.54	1,47,969.44
7	1,47,969.44	369.92	711.32	341.39	1,47,628.05
8	1,47,628.05	369.07	711.32	342.25	1,47,285.80
9	1,47,285.80	368.21	711.32	343.10	1,46,942.70
10	1,46,942.70	367.36	711.32	343.96	1,46,598.74
11	1,46,598.74	366.50	711.32	344.82	1,46,253.92
12	1,46,253.92	365.63	711.32	345.68	1,45,908.24
13	1,45,908.24	364.77	711.32	346.55	1,45,561.69
14	1,45,561.69	363.90	711.32	347.41	1,45,214.28
15	1,45,214.28	363.04	711.32	348.28	1,44,866.00
16	1,44,866.00	362.16	711.32	349.15	1,44,516.85
17	1,44,516.85	361.29	711.32	350.02	1,44,166.82
18	1,44,166.82	360.42	711.32	350.90	1,43,815.92
19	1,43,815.92	359.54	711.32	351.78	1,43,464.14
20	1,43,464.14	358.66	711.32	352.66	1,43,111.49
21	1,43,111.49	357.78	711.32	353.54	1,42,757.95
22	1,42,757.95	356.89	711.32	354.42	1,42,403.53
23	1,42,403.53	356.01	711.32	355.31	1,42,048.22
24	1,42,048.22	355.12	711.32	356.20	1,41,692.02
25	1,41,692.02	354.23	711.32	357.09	1,41,334.94
26	1,41,334.94	353.34	711.32	357.98	1,40,976.96
27	1,40,976.96	352.44	711.32	358.87	1,40,618.08
28	1,40,618.08	351.55	711.32	359.77	1,40,258.31
29	1,40,258.31	350.65	711.32	360.67	1,39,897.64
30	1,39,897.64	349.74	711.32	361.57	1,39,536.07
31	1,39,536.07	348.84	711.32	362.48	1,39,173.59
32	1,39,173.59	347.93	711.32	363.38	1,38,810.21
33	1,38,810.21	347.03	711.32	364.29	1,38,445.91
34	1,38,445.91	346.11	711.32	365.20	1,38,080.71
35	1,38,080.71	345.20	711.32	366.12	1,37,714.60
36	1,37,714.60	344.29	711.32	367.03	1,37,347.57
37	1,37,347.57	343.37	711.32	367.95	1,36,979.62
38	1,36,979.62	342.45	711.32	368.87	1,36,610.75
39	1,36,610.75	341.53	711.32	369.79	1,36,240.96
40	1,36,240.96	340.60	711.32	370.71	1,35,870.25
41	1,35,870.25	339.68	711.32	371.64	1,35,498.61
42	1,35,498.61	338.75	711.32	372.57	1,35,126.03
43	1,35,126.03	337.82	711.32	373.50	1,34,752.53
44	1,34,752.53	336.88	711.32	374.44	1,34,378.10
45	1,34,378.10	335.95	711.32	375.37	1,34,002.73
46	1,34,002.73	335.01	711.32	376.31	1,33,626.42
47	1,33,626.42	334.07	711.32	377.25	1,33,249.16
48	1,33,249.16	333.12	711.32	378.19	1,32,870.97
49	1,32,870.97	332.18	711.32	379.14	1,32,491.83
50	1,32,491.83	331.23	711.32	380.09	1,32,111.74
51	1,32,111.74	330.28	711.32	381.04	1,31,730.71
52	1,31,730.71	329.33	711.32	381.99	1,31,348.72
53	1,31,348.72	328.37	711.32	382.95	1,30,965.77
54	1,30,965.77	327.41	711.32	383.90	1,30,581.87
55	1,30,581.87	326.45	711.32	384.86	1,30,197.01
56	1,30,197.01	325.49	711.32	385.82	1,29,811.18
57	1,29,811.18	324.53	711.32	386.79	1,29,424.39
58	1,29,424.39	323.56	711.32	387.76	1,29,036.64
59	1,29,036.64	322.59	711.32	388.73	1,28,647.91
60	1,28,647.91	321.62	711.32	389.70	1,28,258.21

Balance after paying for 5 years is 1,28,258.21

2

Quarterly payment	=	[P * R * (1+R)^N ] / [(1+R)^N -1]
Using the formula:
Principle	P	11,500.00
Rate of interest per period:
Annual rate of interest		3.600%
Frequency of payment	=	Once in 3 month period
Numer of payments in a year	=	12/3 =	4
Rate of interest per period	R	0.036 /4 =	0.9000%
Total number of payments:
Frequency of payment	=	Once in 3 month period
Number of years of loan repayment	=	6
Total number of payments	N	6*4 =	24
Period payment using the formula	=	[ 11500*0.009*(1+0.009)^24] / [(1+0.009 ^24 -1]
Quarterly payment	=	534.92

3

Monthly payment

Monthly payment	=	[P * R * (1+R)^N ] / [(1+R)^N -1]
Using the formula:
Principle	P	1,40,000.00
Rate of interest per period:
Annual rate of interest		4.000%
Frequency of payment	=	Once in 1 month period
Numer of payments in a year	=	12/1 =	12
Rate of interest per period	R	0.04 /12 =	0.3333%
Total number of payments:
Frequency of payment	=	Once in 1 month period
Number of years of loan repayment	=	6
Total number of payments	N	6*12 =	72
Period payment using the formula	=	[ 140000*0.00333*(1+0.00333)^72] / [(1+0.00333 ^72 -1]
Monthly payment	=	2,190.33