Question

A loan is to be repaid over 30 years, with month-end repayments of 8,000. If the interest rate is 4.9% p.a. compounded monthly. Calculate the loan outstanding balance at the end of 10 years. Correct your answer to the nearest cent without any units. (Do not use "$" or "," in your answer. e.g. 12345.67)

Answer 1

Loan = EMI * PVAF (r%, n)

= $ 8000 * PVAF ( 0.4083%, 360 )

= $ 8000 * 188.4209

= USD 1,507,367.10

Loan Amortization:

Month	Opening Bal	EMI	Int	Principal Repay	Closing Balance
115	$ 12,40,207.33	$ 8,000.00	$ 5,064.18	$ 2,935.82	$ 12,37,271.51
116	$ 12,37,271.51	$ 8,000.00	$ 5,052.19	$ 2,947.81	$ 12,34,323.70
117	$ 12,34,323.70	$ 8,000.00	$ 5,040.16	$ 2,959.84	$ 12,31,363.85
118	$ 12,31,363.85	$ 8,000.00	$ 5,028.07	$ 2,971.93	$ 12,28,391.92
119	$ 12,28,391.92	$ 8,000.00	$ 5,015.93	$ 2,984.07	$ 12,25,407.86
120	$ 12,25,407.86	$ 8,000.00	$ 5,003.75	$ 2,996.25	$ 12,22,411.60
121	$ 12,22,411.60	$ 8,000.00	$ 4,991.51	$ 3,008.49	$ 12,19,403.12
122	$ 12,19,403.12	$ 8,000.00	$ 4,979.23	$ 3,020.77	$ 12,16,382.35
123	$ 12,16,382.35	$ 8,000.00	$ 4,966.89	$ 3,033.11	$ 12,13,349.24

OPening Bal = Prev month closing balance

EMI - Given

Int = Opening Balance * 4.9% /12

Principal Repay = EMI - Int

Closing Bal = Opening bal - Principal repay