Question

Omar just took out a loan from the bank for 151,051 dollars. He plans to repay this loan by making a special payment to the bank of 25,246 dollars in 7 months and by also making equal, regular monthly payments of X. If the interest rate on the loan is 1.15 percent per month, he makes his first regular monthly payment later today, and he makes his last regular monthly payment made in 9 months from today, then what is X, the amount of the regular monthly payment?

Answer 1

Loan Value on Today  = 151,051  

After 07 Months He is planning to make a Payment (P) = 25,246  

Present Value of (P) as on Today ,

Here

r = Monthly Interest Rate = 1.15% = 0.0115

n = 07 Months

PV (P) = 23,304.04

So Loan Value after Deducting the One time Payment (Amnt)

= Loan Amount - PV (P) = 151,051 -   23,304.04 = 127,746.95

Now This 127,746.95 Amount will be paid in Equal  monthly payments of X for 09 Months

Here

r =  Monthly Interest Rate  = 1.15% = 0.0115

n = 09 Months

Amnt = 127,746.95

X = 0.0115 * 1306322.407

X = 15022.70

So the Value of X, amount of the regular monthly payment = 15022.70 (Ans)