Repayment plan
1. A bank gives you a loan in the amount of 4,000,000.00. You promise to
repay the loan in 25 years by monthly regular payment. The bank requires
10 % p. a. You provide regular monthly payment and the bank calculates
interest every month. Estimate the first two rows in the repayment plan
and calculate how much you pay only on interest after five years and finally
write the 98. row in the amortization table.
# A I M D
4,000,000.00
1 36,348.03 33,333.33 3,014.696 3,996,985.00
2 36,348.03 33,308.21 3.039,819 3,993,945.00
...
...
...
...
...
98 36,348.03 29,605.18 6,742.852 3,545,878.00
...
...
...
...
...
300 88 788 6344 0
(
60
1 = 1, 947, 433.00)
2. Provide the same task with a modification of your payment. Now, you
will pay once in three months. Everything else remains unchanged.
# A I M D
4,000,000.00
1 109,955.314 100,835.648 9,119.666 3,990,880.334
2 109,955.314 100,605.751 9,349.563 3,981,530.771
...
...
...
...
...
98 109,955.314 7,913.280 102,042.034 211,866.020
...
...
...
...
...
100 109,955.314 2,703.697 107,251.618 0
(
20
1 = 1, 965, 657.00)
3. Further, provide all calculations if you assume that the amount of amortization
will be by each payment the same. Firstly, PP = 1 month and
secondly PP = 3 months. Everything else remains unchanged.
# A I M D
4,000,000.00
1 46,666.6674 33,333.333 13,333.333 3,986.666.667
2 46,555.556 33,222.222 13,333.333 3,973,333.333
...
...
...
...
...
98 109,955.314 7,913.280 13,333.333 2,693,333.333
...
...
...
...
...
300 109,955.314 2,703.697 13,333.333 0
(
60
1 = 1, 803, 333.333)
# A I M D
4,000,000.00
1 140,835.648 100,835.648 40,000.00 3,960,000.00
2 139,827.292 99,827.291 40,000.00 3,981,530.771
...
...
...
...
...
98 43,025.069 3,025.069 40,000.00 80,000.00
...
...
...
...
...
100 41,008.356 1,008.356 40,000.00 0
1
(
20
1 = 1, 825, 125.231)
2