Question

A loan is to be repaid over 30 years, with month-end repayments of 8,000. If the interest rate is 3.8% p.a. compounded monthly. Calculate the interest paid for year 10. Correct your answer to the nearest cent without any units. (Do not use "$" or "," in your answer. e.g. 12345.67)

Answer 1

Interest paid in year 10 is 51961.79

Below is the amortization schedule for 10th year

Payment

Loan beginning balance

Payment

Interest payment

Principal payment

Loan ending balance

109	$13,87,461.36	$8,000.00	$4,393.63	$3,606.37	$13,83,854.99
110	$13,83,854.99	$8,000.00	$4,382.21	$3,617.79	$13,80,237.20
111	$13,80,237.20	$8,000.00	$4,370.75	$3,629.25	$13,76,607.95
112	$13,76,607.95	$8,000.00	$4,359.26	$3,640.74	$13,72,967.20
113	$13,72,967.20	$8,000.00	$4,347.73	$3,652.27	$13,69,314.93
114	$13,69,314.93	$8,000.00	$4,336.16	$3,663.84	$13,65,651.10
115	$13,65,651.10	$8,000.00	$4,324.56	$3,675.44	$13,61,975.66
116	$13,61,975.66	$8,000.00	$4,312.92	$3,687.08	$13,58,288.58
117	$13,58,288.58	$8,000.00	$4,301.25	$3,698.75	$13,54,589.83
118	$13,54,589.83	$8,000.00	$4,289.53	$3,710.47	$13,50,879.36
119	$13,50,879.36	$8,000.00	$4,277.78	$3,722.22	$13,47,157.15
120	$13,47,157.15	$8,000.00	$4,266.00	$3,734.00	$13,43,423.15