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    MORTGAGE AMORTISATION PROBLEM Gim

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    AMAN KUMAR
    The document summarizes a 20-year, Rs. 200,000 mortgage loan with an annual interest rate of 6%. It includes the annual payment amount (Rs. 17436.91), an amortization table showing the interest paid, principal paid, and remaining balance each year, and calculations of the fraction of initial payments that go toward interest (68.8%), the fraction of interest in the final payment (5.7%), and the fraction of the loan paid after 10 years (36%).

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    MORTGAGE AMORTISATION PROBLEM Gim

    Uploaded by

    AMAN KUMAR
    7 views4 pages
    The document summarizes a 20-year, Rs. 200,000 mortgage loan with an annual interest rate of 6%. It includes the annual payment amount (Rs. 17436.91), an amortization table showing the interest paid, principal paid, and remaining balance each year, and calculations of the fraction of initial payments that go toward interest (68.8%), the fraction of interest in the final payment (5.7%), and the fraction of the loan paid after 10 years (36%).

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    MORTGAGE AMORTISATION PROBLEM gim

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    The document summarizes a 20-year, Rs. 200,000 mortgage loan with an annual interest rate of 6%. It includes the annual payment amount (Rs. 17436.91), an amortization table showing the interest paid, principal paid, and remaining balance each year, and calculations of the fraction of initial payments that go toward interest (68.8%), the fraction of interest in the final payment (5.7%), and the fraction of the loan paid after 10 years (36%).

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    7 views4 pages

    MORTGAGE AMORTISATION PROBLEM Gim

    Uploaded by

    AMAN KUMAR
    The document summarizes a 20-year, Rs. 200,000 mortgage loan with an annual interest rate of 6%. It includes the annual payment amount (Rs. 17436.91), an amortization table showing the interest paid, principal paid, and remaining balance each year, and calculations of the fraction of initial payments that go toward interest (68.8%), the fraction of interest in the final payment (5.7%), and the fraction of the loan paid after 10 years (36%).

    Copyright:

    © All Rights Reserved
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    of 4

    Suppose you take Rs. 200,000 , 20 year mortgage loan to buy apartment.

    The inte

    Q1. What is Annual Payment of the Loan ?

    Input variables:
    Loan amount 200000
    Number of paym 20
    Interest rate 6%
    d. Number of ye 20

    SOLUTION
    Get 20-year Annuity Factor at 6% interest rate

    20-year annuity factor = [1/.06 – 1/.06(1.06) 20) 11.46992

    17436.91

    Q2. Construct the Mortgage Amortisation table containing interest payment, amortisation of the loan an

    Total Amortiza End-of-


    Beginning Balance Year-End Year-End tion of Year
    Year Interest Payment Loan
    (Rs. ) Balance
    (Rs. )
    (Rs. ) (Rs. ) (Rs. )

    1 200000 12000 17436.91 5436.911 194563


    2 194563 11673.79 17436.91 5763.126 188800
    3 188800 11328 17436.91 6108.914 182691
    4 182691 10961.46 17436.91 6475.448 176216
    5 176216 10572.94 17436.91 6863.975 169352
    6 169352 10161.1 17436.91 7275.814 162076
    7 162076 9724.549 17436.91 7712.363 154363
    8 154363 9261.807 17436.91 8175.104 146188
    9 146188 8771.301 17436.91 8665.611 137523
    10 137523 8251.364 17436.91 9185.547 128337
    11 128337 7700.231 17436.91 9736.68 118601
    12 118601 7116.03 17436.91 10320.88 108280
    13 108280 6496.777 17436.91 10940.13 97339
    14 97339 5840.369 17436.91 11596.54 85743
    15 85743 5144.577 17436.91 12292.33 73451
    16 73451 4407.037 17436.91 13029.87 60421
    17 60421 3625.244 17436.91 13811.67 46609
    18 46609 2796.544 17436.91 14640.37 31969
    19 31969 1918.122 17436.91 15518.79 16450
    20 16450 986.995 17436.91 16449.92 0

    Q3. What fraction of your initial loan payment is interest ?

    0.68819527311392

    Q4. What about last payment ?

    0.05660377358491

    Q5. What fraction of loan has been paid after 10 years ?

    0.36
    uy apartment. The interest rate on loan is 6% and payment on loan are made annually at the end of each yea

    t, amortisation of the loan and balance of loan at each year ?


    y at the end of each year.

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