Question

Henry Jones intends to purchase a home unit and needs to borrow money from the bank. Details of the loan are as follows:

Loan Amount $732,000 Term (years)         14 Annual Interest Rate                      5.00% The loan is repaid using Monthly instalments. At the end of the sixth year, just after paying the 72nd instalment due at that time, Henry has a windfall and is considering paying out the loan.

Required:

How much money would be required to discharge the loan at the end of the 6th year?

Answer 1

Amount of $ 479,255.65 need to paid to discharge the loan after the payment of 72nd installment.

Kindly see the below calcuations.-

	Payment	Interest	Balance
			$732,000.00
1	$6,067.33	$3,050.00	$728,982.67
2	$6,067.33	$3,037.43	$725,952.77
3	$6,067.33	$3,024.80	$722,910.24
4	$6,067.33	$3,012.13	$719,855.04
5	$6,067.33	$2,999.40	$716,787.11
6	$6,067.33	$2,986.61	$713,706.39
7	$6,067.33	$2,973.78	$710,612.84
8	$6,067.33	$2,960.89	$707,506.40
9	$6,067.33	$2,947.94	$704,387.01
10	$6,067.33	$2,934.95	$701,254.63
11	$6,067.33	$2,921.89	$698,109.19
12	$6,067.33	$2,908.79	$694,950.65
13	$6,067.33	$2,895.63	$691,778.95
14	$6,067.33	$2,882.41	$688,594.03
15	$6,067.33	$2,869.14	$685,395.84
16	$6,067.33	$2,855.82	$682,184.33
17	$6,067.33	$2,842.43	$678,959.43
18	$6,067.33	$2,829.00	$675,721.10
19	$6,067.33	$2,815.50	$672,469.27
20	$6,067.33	$2,801.96	$669,203.90
21	$6,067.33	$2,788.35	$665,924.92
22	$6,067.33	$2,774.69	$662,632.28
23	$6,067.33	$2,760.97	$659,325.92
24	$6,067.33	$2,747.19	$656,005.78
25	$6,067.33	$2,733.36	$652,671.81
26	$6,067.33	$2,719.47	$649,323.95
27	$6,067.33	$2,705.52	$645,962.14
28	$6,067.33	$2,691.51	$642,586.32
29	$6,067.33	$2,677.44	$639,196.43
30	$6,067.33	$2,663.32	$635,792.42
31	$6,067.33	$2,649.14	$632,374.23
32	$6,067.33	$2,634.89	$628,941.79
33	$6,067.33	$2,620.59	$625,495.05
34	$6,067.33	$2,606.23	$622,033.95
35	$6,067.33	$2,591.81	$618,558.43
36	$6,067.33	$2,577.33	$615,068.43
37	$6,067.33	$2,562.79	$611,563.89
38	$6,067.33	$2,548.18	$608,044.74
39	$6,067.33	$2,533.52	$604,510.93
40	$6,067.33	$2,518.80	$600,962.40
41	$6,067.33	$2,504.01	$597,399.08
42	$6,067.33	$2,489.16	$593,820.91
43	$6,067.33	$2,474.25	$590,227.83
44	$6,067.33	$2,459.28	$586,619.78
45	$6,067.33	$2,444.25	$582,996.70
46	$6,067.33	$2,429.15	$579,358.52
47	$6,067.33	$2,413.99	$575,705.18
48	$6,067.33	$2,398.77	$572,036.62
49	$6,067.33	$2,383.49	$568,352.78
50	$6,067.33	$2,368.14	$564,653.59
51	$6,067.33	$2,352.72	$560,938.98
52	$6,067.33	$2,337.25	$557,208.90
53	$6,067.33	$2,321.70	$553,463.27
54	$6,067.33	$2,306.10	$549,702.04
55	$6,067.33	$2,290.43	$545,925.14
56	$6,067.33	$2,274.69	$542,132.50
57	$6,067.33	$2,258.89	$538,324.06
58	$6,067.33	$2,243.02	$534,499.75
59	$6,067.33	$2,227.08	$530,659.50
60	$6,067.33	$2,211.08	$526,803.25
61	$6,067.33	$2,195.01	$522,930.93
62	$6,067.33	$2,178.88	$519,042.48
63	$6,067.33	$2,162.68	$515,137.83
64	$6,067.33	$2,146.41	$511,216.91
65	$6,067.33	$2,130.07	$507,279.65
66	$6,067.33	$2,113.67	$503,325.99
67	$6,067.33	$2,097.19	$499,355.85
68	$6,067.33	$2,080.65	$495,369.17
69	$6,067.33	$2,064.04	$491,365.88
70	$6,067.33	$2,047.36	$487,345.91
71	$6,067.33	$2,030.61	$483,309.19
72	$6,067.33	$2,013.79	$479,255.65