Question

In: Economics

You receive a loan of $8000 from a friend. The terms of the loan include a...

You receive a loan of $8000 from a friend. The terms of the loan include a semi-annual interest rate of 5% that is compounded monthly. If you pay equal installments each month over 10 years to pay off the loan, how much will you be paying each month?

Solutions

Expert Solution

EMI Calculator
Loan Amount 8000 Created by Naveen
Loan Term (Years) 10
Payments Per Year 12 Downloaded From
Rate of Interest 0.83% http://www.naveen.info
Monthly Installment 70
Values are rounded to "0" --- Calculator is good for "20" years
S.No Monthly Installment Interest Principal Balance
0 8000
1 70 6 64 7936
2 70 6 64 7872
3 70 5 64 7808
4 70 5 64 7744
5 70 5 64 7680
6 70 5 64 7616
7 70 5 64 7551
8 70 5 64 7487
9 70 5 64 7423
10 70 5 64 7358
11 70 5 64 7294
12 70 5 64 7230
13 70 5 64 7165
14 70 5 65 7101
15 70 5 65 7036
16 70 5 65 6971
17 70 5 65 6907
18 70 5 65 6842
19 70 5 65 6777
20 70 5 65 6713
21 70 5 65 6648
22 70 5 65 6583
23 70 5 65 6518
24 70 5 65 6453
25 70 4 65 6388
26 70 4 65 6323
27 70 4 65 6258
28 70 4 65 6192
29 70 4 65 6127
30 70 4 65 6062
31 70 4 65 5997
32 70 4 65 5931
33 70 4 65 5866
34 70 4 65 5801
35 70 4 65 5735
36 70 4 66 5670
37 70 4 66 5604
38 70 4 66 5538
39 70 4 66 5473
40 70 4 66 5407
41 70 4 66 5341
42 70 4 66 5275
43 70 4 66 5210
44 70 4 66 5144
45 70 4 66 5078
46 70 4 66 5012
47 70 3 66 4946
48 70 3 66 4880
49 70 3 66 4814
50 70 3 66 4747
51 70 3 66 4681
52 70 3 66 4615
53 70 3 66 4549
54 70 3 66 4482
55 70 3 66 4416
56 70 3 66 4350
57 70 3 66 4283
58 70 3 67 4216
59 70 3 67 4150
60 70 3 67 4083
61 70 3 67 4017
62 70 3 67 3950
63 70 3 67 3883
64 70 3 67 3816
65 70 3 67 3749
66 70 3 67 3683
67 70 3 67 3616
68 70 3 67 3549
69 70 2 67 3482
70 70 2 67 3414
71 70 2 67 3347
72 70 2 67 3280
73 70 2 67 3213
74 70 2 67 3146
75 70 2 67 3078
76 70 2 67 3011
77 70 2 67 2944
78 70 2 67 2876
79 70 2 68 2809
80 70 2 68 2741
81 70 2 68 2673
82 70 2 68 2606
83 70 2 68 2538
84 70 2 68 2470
85 70 2 68 2403
86 70 2 68 2335
87 70 2 68 2267
88 70 2 68 2199
89 70 2 68 2131
90 70 1 68 2063
91 70 1 68 1995
92 70 1 68 1927
93 70 1 68 1859
94 70 1 68 1790
95 70 1 68 1722
96 70 1 68 1654
97 70 1 68 1585
98 70 1 68 1517
99 70 1 68 1449
100 70 1 69 1380
101 70 1 69 1311
102 70 1 69 1243
103 70 1 69 1174
104 70 1 69 1106
105 70 1 69 1037
106 70 1 69 968
107 70 1 69 899
108 70 1 69 830
109 70 1 69 761
110 70 1 69 692
111 70 0 69 623
112 70 0 69 554
113 70 0 69 485
114 70 0 69 416
115 70 0 69 347
116 70 0 69 278
117 70 0 69 208
118 70 0 69 139
119 70 0 69 69
120 70 0 69 0

Hence Monthly Installment is $70

Rahul Sunny answered 3 years ago
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