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  • Ishfaq

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    chipku88
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    The document provides solutions to two questions regarding loan amortization. It first calculates the quarterly installment amount for a $600,000 loan at 16% APR over 12 quarters. The installment amount is $63,931.80. It then provides an amortization table showing the beginning balance, installment amount, interest amount, principal repayment, and ending balance for each of the 12 quarters.

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    ishfaq

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    The document provides solutions to two questions regarding loan amortization. It first calculates the quarterly installment amount for a $600,000 loan at 16% APR over 12 quarters. The installment amount is $63,931.80. It then provides an amortization table showing the beginning balance, installment amount, interest amount, principal repayment, and ending balance for each of the 12 quarters.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLSX, PDF, TXT or read online from Scribd
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    8 views2 pages

    Ishfaq

    Uploaded by

    chipku88
    The document provides solutions to two questions regarding loan amortization. It first calculates the quarterly installment amount for a $600,000 loan at 16% APR over 12 quarters. The installment amount is $63,931.80. It then provides an amortization table showing the beginning balance, installment amount, interest amount, principal repayment, and ending balance for each of the 12 quarters.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    of 2

    Q.No.

    1: Find the installment


    Following figure are given
    Loan is 600000
    Rate=16% APR ; n=3*4=12
    r=16/4=4% ; Quarterly
    Solution:
    PVA=PMT [1- (1+i)¯ⁿ / i ]
    600000=PMT [1- (1+4%)¯¹² / 4% ]
    600000=PMT [9.3850]
    PMT=600000/9.3850
    PMT=63931.8060

    Q.No.2: Loan Amortization table


    Solution:
    A B C
    InstallmenBegning balance Installment Amount
    1 600000 63931.806
    2 560068.194 63931.806
    3 518539.11576 63931.806
    4 475348.8743904 63931.806
    5 430431.02336602 63931.806
    6 383716.45830066 63931.806
    7 335133.31063268 63931.806
    8 284606.83705799 63931.806
    9 232059.30454031 63931.806
    10 177409.87072192 63931.806
    11 120574.4595508 63931.806
    12 61465.631932831 63931.806

    n i a
    D E F
    Interest Amount Principle Repatment Ending Balance
    24000 39931.806 560068.194
    22402.72776 41529.07824 518539.11576
    20741.5646304 43190.2413696 475348.8743904
    19013.954975616 44917.851024384 430431.023366016
    17217.2409346406 46714.5650653594 383716.458300657
    15348.6583320263 48583.1476679737 335133.310632683
    13405.3324253073 50526.4735746927 284606.83705799
    11384.2734823196 52547.5325176804 232059.30454031
    9282.3721816124 54649.4338183876 177409.870721922
    7096.39482887689 56835.4111711231 120574.459550799
    4822.97838203197 59108.827617968 61465.6319328311
    2458.62527731325 61473.1807226868 -7.54878985560936

    a s

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