4. Calculate the new monthly payment given a $150,000 loan for 6%, 30 years (monthly)...

4. Calculate the new monthly payment given a $150,000 loan for 6%, 30 years (monthly) with a lump-sum pay down of $20,000 made after 12 years have lapsed.

New MP:

Calculate the upfront fees that needs to be charged by the lender given a loan for $150,000 with terms 6%, 30 years (monthly compounding). The lender wants to earn a 6.6% yield. Assume a holding period of 12 years.
Calculate the total payments and total interest expense for a $150,000 loan with terms 6%, 30 years compounded monthly. The loan is assumed to be held to maturity.

Total Payments: _________________________

Loan Amount: ___________________________

Interest Expense: _________________________

Expert Solution

1) Monthly EMI Calculation if 20000 is paid after 12 years

Information
Loan	150000
Interest	6% pa	0.50%	Monthly
Year	30 years	360	Months

Date	Loan	Principal	Interest	Total EMI	Net Balance	First 12 Years
43,952.00	1,50,000.00	149.32	750.00	899.32	1,49,850.68
43,983.00	1,49,850.68	150.07	749.25	899.32	1,49,700.60
44,013.00	1,49,700.60	150.82	748.50	899.32	1,49,549.78
44,044.00	1,49,549.78	151.58	747.75	899.32	1,49,398.21
44,075.00	1,49,398.21	152.33	746.99	899.32	1,49,245.87
48,274.00	1,19,227.26	303.19	596.14	899.32	1,18,924.07
48,305.00	1,18,924.07	304.70	594.62	899.32	1,18,619.37

Loan	₹ 1,18,619
Lump Sum Repayment	₹ 20,000
Net Loan	₹ 98,619
Interest	6% pa	0.50%	Monthly
Years	18.00	216	Months

EMI	₹ 747.69

2 Interest Principal and total calculation

Information
Loan	150000
Interest	6% pa	0.50%	Monthly
Year	30 years	360	Months

Date	Loan	Principal	Interest	Total EMI	Net Balance
01-05-2020	1,50,000.00	149.32	750.00	899.32	1,49,850.68
01-06-2020	1,49,850.68	150.07	749.25	899.32	1,49,700.60
01-07-2020	1,49,700.60	150.82	748.50	899.32	1,49,549.78
01-08-2020	1,49,549.78	151.58	747.75	899.32	1,49,398.21
01-09-2020	1,49,398.21	152.33	746.99	899.32	1,49,245.87
01-10-2020	1,49,245.87	153.10	746.23	899.32	1,49,092.78
01-12-2049	4,430.93	877.17	22.15	899.32	3,553.76
01-01-2050	3,553.76	881.56	17.77	899.32	2,672.20
01-02-2050	2,672.20	885.96	13.36	899.32	1,786.24
01-03-2050	1,786.24	890.39	8.93	899.32	895.85
01-04-2050	895.85	894.85	4.48	899.32	1.00
	Total	1,49,999.00	1,73,757.93	3,23,756.93

Principal= 150000

INterest = 173758

Total= 323756

jeff jeffy answered 1 year ago

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