Question

A loan of 673,000 is to be repaid in 30 years by month-end repayments starting in one month. The interest rate is 6.3% p.a. compounded monthly. Calculate the interest paid in Year 5. (between the end of month 48 and the end of month 60). Correct your answer to the nearest cent without any units. (Do not use "$" or "," in your answer. e.g. 12345.67) (Hint: you can use Excel to find the answer.) Answer:

Answer 1

EMI = Laon Amount / PVAF (r%, n)

PVAF = Sum of PVF

r is Int Rate per month

n is no. of months

EMI = Laon Amount / PVAF (r%, n)

= $ 673,000 / 161.558

= $ 4165.69

Loan Amortization:

Month	Opening Balance	Instalment	Int	Principal Repay	Closing Balance
1	6,73,000.00	4,165.69	3,533.25	632.44	6,72,367.56
2	6,72,367.56	4,165.69	3,529.93	635.76	6,71,731.81
3	6,71,731.81	4,165.69	3,526.59	639.09	6,71,092.71
4	6,71,092.71	4,165.69	3,523.24	642.45	6,70,450.26
5	6,70,450.26	4,165.69	3,519.86	645.82	6,69,804.44
6	6,69,804.44	4,165.69	3,516.47	649.21	6,69,155.22
7	6,69,155.22	4,165.69	3,513.06	652.62	6,68,502.60
8	6,68,502.60	4,165.69	3,509.64	656.05	6,67,846.55
9	6,67,846.55	4,165.69	3,506.19	659.49	6,67,187.06
10	6,67,187.06	4,165.69	3,502.73	662.95	6,66,524.11
11	6,66,524.11	4,165.69	3,499.25	666.44	6,65,857.67
12	6,65,857.67	4,165.69	3,495.75	669.93	6,65,187.74
13	6,65,187.74	4,165.69	3,492.24	673.45	6,64,514.29
14	6,64,514.29	4,165.69	3,488.70	676.99	6,63,837.30
15	6,63,837.30	4,165.69	3,485.15	680.54	6,63,156.76
16	6,63,156.76	4,165.69	3,481.57	684.11	6,62,472.64
17	6,62,472.64	4,165.69	3,477.98	687.71	6,61,784.94
18	6,61,784.94	4,165.69	3,474.37	691.32	6,61,093.62
19	6,61,093.62	4,165.69	3,470.74	694.95	6,60,398.68
20	6,60,398.68	4,165.69	3,467.09	698.59	6,59,700.08
21	6,59,700.08	4,165.69	3,463.43	702.26	6,58,997.82
22	6,58,997.82	4,165.69	3,459.74	705.95	6,58,291.87
23	6,58,291.87	4,165.69	3,456.03	709.65	6,57,582.22
24	6,57,582.22	4,165.69	3,452.31	713.38	6,56,868.84
25	6,56,868.84	4,165.69	3,448.56	717.13	6,56,151.71
26	6,56,151.71	4,165.69	3,444.80	720.89	6,55,430.82
27	6,55,430.82	4,165.69	3,441.01	724.68	6,54,706.15
28	6,54,706.15	4,165.69	3,437.21	728.48	6,53,977.67
29	6,53,977.67	4,165.69	3,433.38	732.30	6,53,245.36
30	6,53,245.36	4,165.69	3,429.54	736.15	6,52,509.22
31	6,52,509.22	4,165.69	3,425.67	740.01	6,51,769.20
32	6,51,769.20	4,165.69	3,421.79	743.90	6,51,025.30
33	6,51,025.30	4,165.69	3,417.88	747.80	6,50,277.50
34	6,50,277.50	4,165.69	3,413.96	751.73	6,49,525.77
35	6,49,525.77	4,165.69	3,410.01	755.68	6,48,770.09
36	6,48,770.09	4,165.69	3,406.04	759.64	6,48,010.45
37	6,48,010.45	4,165.69	3,402.05	763.63	6,47,246.82
38	6,47,246.82	4,165.69	3,398.05	767.64	6,46,479.18
39	6,46,479.18	4,165.69	3,394.02	771.67	6,45,707.51
40	6,45,707.51	4,165.69	3,389.96	775.72	6,44,931.78
41	6,44,931.78	4,165.69	3,385.89	779.80	6,44,151.99
42	6,44,151.99	4,165.69	3,381.80	783.89	6,43,368.10
43	6,43,368.10	4,165.69	3,377.68	788.00	6,42,580.09
44	6,42,580.09	4,165.69	3,373.55	792.14	6,41,787.95
45	6,41,787.95	4,165.69	3,369.39	796.30	6,40,991.65
46	6,40,991.65	4,165.69	3,365.21	800.48	6,40,191.17
47	6,40,191.17	4,165.69	3,361.00	804.68	6,39,386.49
48	6,39,386.49	4,165.69	3,356.78	808.91	6,38,577.58
49	6,38,577.58	4,165.69	3,352.53	813.15	6,37,764.43
50	6,37,764.43	4,165.69	3,348.26	817.42	6,36,947.00
51	6,36,947.00	4,165.69	3,343.97	821.72	6,36,125.29
52	6,36,125.29	4,165.69	3,339.66	826.03	6,35,299.26
53	6,35,299.26	4,165.69	3,335.32	830.37	6,34,468.89
54	6,34,468.89	4,165.69	3,330.96	834.73	6,33,634.17
55	6,33,634.17	4,165.69	3,326.58	839.11	6,32,795.06
56	6,32,795.06	4,165.69	3,322.17	843.51	6,31,951.55
57	6,31,951.55	4,165.69	3,317.75	847.94	6,31,103.61
58	6,31,103.61	4,165.69	3,313.29	852.39	6,30,251.21
59	6,30,251.21	4,165.69	3,308.82	856.87	6,29,394.35
60	6,29,394.35	4,165.69	3,304.32	861.37	6,28,532.98
61	6,28,532.98	4,165.69	3,299.80	865.89	6,27,667.09

From the above table Int Paid in Year 5 is 39,943.64