A loan is repayable by decreasing quarterly instalments made in arrears for 8 years. The payment made at the end of the first quarter year is £2,100 and subsequent payments decrease by £20 each quarter. The instalments were calculated using a nominal rate of interest of 6% per annum convertible quarterly. (a) Calculate the original amount of the loan in whole pounds. (b) Calculate the amount of interest and capital components in the 10th instalment.

A loan of £97,550 is repayable by an annuity payable annually in arrears for 17 years. After the first repayment instalment, subsequent repayment instalments are to be increased by £300 each year. The repayment instalments were calculated using a rate of interest of 5.3% per annum effective. (i) Calculate, to 2 decimal places, the amount of the first repayment instalment: (ii) Calculate, to 2 decimal places, the loan outstanding after the first 10 payments: £ (iii) Immediately after the 10th repayment instalment, the interest rate on the outstanding loan is increased to 6.7% per annum effective and future instalments are kept level, equal to the instalment amount paid at the end of the 10th year. (a) Calculate the adjusted remaining term of the new loan (in whole years): (b) Calculate, to 2 decimal places, the amount of repayment (X) made in the final year: £

A loan of £4,000 is to be repaid over 5 years by a level annuity payable monthly in arrears. The amount of the monthly payment is calculated on the basis of an interest rate of 1% per month effective. Find a) The interest paid in the first month b)The repaid capital c)In the last month, the interest paid and the capital repaid

A loan of £4,000 is to be repaid over 5 years by a level annuity payable monthly in arrears. The amount of the monthly payment is calculated on the basis of an interest rate of 1% per month effective. Find the total capital repaid and interest paid in the first and last month, respectively. Answer: The interest paid in the first month is a) £4000x1.01= £4040 b) £4000x(1-exp(-0.01))=£39.807  c)£4000x0.01= £40 d)£4000x0.12= £480 The repaid capital is    a)£0.535 b)£48.9778 c)£49.1771  d)£587.734          In the last month, the interest paid is                      a)£ 0.00535 b)£0.489778    c) £0.889778 d)0.491771  In the last month, the capital repaid is  a)£479.645 b)£431.358 c)£88.088 d)39.8007 They are multiple-choice questions

A loan of $92,800.00 is repaid by equal payments made at the end of every three months for 3 years. If interest is 8% compounded quarterly, find the size of the quarterly payments and construct an amortization schedule showing the payment number, amount paid, interest paid, principal repaid and outstanding principal balance of each payment. Additionally, include the totals for amount paid, interest paid and principal repaid of the loan.

A loan is to be amortized by equal payments of P5,000 at the end of each six months for 10 years. If the interest is based on 7% compounded semiannually, find: a. the present value of the loan b. The outstanding principal just after the 8 th payment; and c. The remaining liability after 8 years.

A loan of £ 2,120,000 is repayable by equal quarterly payments for 15 years. The effective rate of interest is 6% pa. iv. What is the total interest paid after the 25th payment?v. What is the amount of capital portion in the 54th payment?

Exactly 5 years ago, a loan was taken out that was to be repaid by level annual instalments made in arrears over a 15-year contract. Given that the instalments (of capital and interest) were set to £883 per annum based on a 8% p.a. effective interest rate on the borrowing, calculate the following: (i) The initial amount of loan taken out on this contract. (ii) The amount of loan outstanding immediately after the instalment now due is paid. It is agreed that, immediately after the instalment now due, the rate of interest charged on the outstanding loan is reduced to 5.5% p.a. effective. Consequently, the same annual instalments will be payable for a revised remaining term and also with an amended final payment. Thus, find the following: (a) The revised remaining term of the loan outstanding in whole years. (b) The amount of the amended final payment. (c) The interest component of the amended final payment.

A loan is repayable by a decreasing annuity payable annually in arrears for 20 years. The repayment at the end of the first year is $6,000 and subsequent repayments reduce by $200 each year. The repayments were calculated using an effective rate of interest of 9% per annum. (a) Calculate the original amount of the loan. (b) Immediately after the ninth payment of interest and capital, the interest rate on the outstanding loan is reduced to 7% per annum effective. Calculate the amount of the tenth payment if subsequent payments continue to be reduced by $200 each year, and the loan is to be repaid by the original date, i.e. 20 years from commencement.

A debt of $1908 with interest at 6.3% compounded annually is to be repaid by equal payments at the end of each year for 4 years. 1. What is the balance remaining (BAL) after the first payment? 2. What is the principal repaid (PRN) in the first period? 3. What is the interest paid (INT) in the first period?