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In: Finance

Mr. Paul Trevor Kipyegon’s bank has agreed to extend to him a personal loan of Shs....

  1. Mr. Paul Trevor Kipyegon’s bank has agreed to extend to him a personal loan of Shs. 562,500/= over a period of 11/2 years to enable him sort out some urgent domestic problems. This loan will be repaid in monthly installments at the end of each month over the loan period. The proposed interest rate is 15% p.a.

Required:

Prepare a loan repayment schedule for Mr. Kipyegon indicating:

  1. The Model Drivers   
  2. The constant payment
  3. Interest payment
  4. Principal payment, and   
  5. The principal balance.
  6. What is the total interest payable by the end of the loan period?

Solutions

Expert Solution

jeff jeffy answered 2 years ago
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