Question

assume you borrow $ 15000 for 42 monthsat 10.5% interest, a. how much will still owe after the 17th payment? b. how much are your monthly payments? c. how much will you have pain in interest by the 17th payment?

Answer 1

EMI = Loan/PVIFA
PVIFA(r%,n) = [1+(1/(1+r)^n / r]
here r = 10.5%/12 =0.875%
n = 42 months
PVIFA(0.875%,42) = [1-(1/(1+0.00875)^42 / 0.00875]
=[1-(1/(1.00875)^42 / 0.00875]
=[1 - 0.693571 / 0.00875]
=[0.306429/0.00875]
=35.02044
Thus EMI = 15000/35.02044
=428.32$

Statement showing repayment schedule

			Towards
Month	Opening balance	Installment	Int @ 0.875%	Principal	Closing balance
1	15000.00	428.32	131.25	297.07	14702.93
2	14702.93	428.32	128.65	299.67	14403.26
3	14403.26	428.32	126.03	302.29	14100.97
4	14100.97	428.32	123.38	304.94	13796.03
5	13796.03	428.32	120.72	307.60	13488.43
6	13488.43	428.32	118.02	310.30	13178.13
7	13178.13	428.32	115.31	313.01	12865.12
8	12865.12	428.32	112.57	315.75	12549.37
9	12549.37	428.32	109.81	318.51	12230.86
10	12230.86	428.32	107.02	321.30	11909.56
11	11909.56	428.32	104.21	324.11	11585.45
12	11585.45	428.32	101.37	326.95	11258.50
13	11258.50	428.32	98.51	329.81	10928.69
14	10928.69	428.32	95.63	332.69	10596.00
15	10596.00	428.32	92.71	335.61	10260.39
16	10260.39	428.32	89.78	338.54	9921.85
17	9921.85	428.32	86.82	341.50	9580.35
18	9580.35	428.32	83.83	344.49	9235.85
19	9235.85	428.32	80.81	347.51	8888.35
20	8888.35	428.32	77.77	350.55	8537.80
21	8537.80	428.32	74.71	353.61	8184.19
22	8184.19	428.32	71.61	356.71	7827.48
23	7827.48	428.32	68.49	359.83	7467.65
24	7467.65	428.32	65.34	362.98	7104.67
25	7104.67	428.32	62.17	366.15	6738.52
26	6738.52	428.32	58.96	369.36	6369.16
27	6369.16	428.32	55.73	372.59	5996.57
28	5996.57	428.32	52.47	375.85	5620.72
29	5620.72	428.32	49.18	379.14	5241.58
30	5241.58	428.32	45.86	382.46	4859.12
31	4859.12	428.32	42.52	385.80	4473.32
32	4473.32	428.32	39.14	389.18	4084.14
33	4084.14	428.32	35.74	392.58	3691.56
34	3691.56	428.32	32.30	396.02	3295.54
35	3295.54	428.32	28.84	399.48	2896.06
36	2896.06	428.32	25.34	402.98	2493.08
37	2493.08	428.32	21.81	406.51	2086.57
38	2086.57	428.32	18.26	410.06	1676.51
39	1676.51	428.32	14.67	413.65	1262.86
40	1262.86	428.32	11.05	417.27	845.59
41	845.59	428.32	7.40	420.92	424.67
42	424.67	428.32	3.72	424.60	0

a) after 17th payment, amount outstanding = 9580.35$

b) EMI = 428.32$

c) Interest paid till 17th payment = 1861.79$