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

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:

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

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Expert Solution

jeff jeffy answered 1 year ago

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