2 answers

Outstanding Loan Balance

Question:

A 15 year mortage of 117,134.8- is being repaid with monthly payments of $988.45 based upon nominal interest rate of 6% convertible monthly. Immediately after the 60thpayment, the interest rate is increased to a nominal interest rate of 7.5% convertible monthly. The monthly payments remain at $988.45. Calculate the loan balanceimmediately after the 84th payment. Calculate the amount of interest in the 84th payment.

Answers

Interest Rate till 60th Payment:

Interest Rate after 60th Payment:

End of Month

Payment

Interest

Principal

Balance

0

$117,134.80

1

$988.45

$585.67

$402.78

$116,732.02

2

$988.45

$583.66

$404.79

$116,327.23

3

$988.45

$581.64

$406.81

$115,920.42

4

$988.45

$579.60

$408.85

$115,511.57

5

$988.45

$577.56

$410.89

$115,100.68

6

$988.45

$575.50

$412.95

$114,687.73

7

$988.45

$573.44

$415.01

$114,272.72

8

$988.45

$571.36

$417.09

$113,855.64

9

$988.45

$569.28

$419.17

$113,436.46

10

$988.45

$567.18

$421.27

$113,015.20

11

$988.45

$565.08

$423.37

$112,591.82

12

$988.45

$562.96

$425.49

$112,166.33

13

$988.45

$560.83

$427.62

$111,738.71

14

$988.45

$558.69

$429.76

$111,308.96

15

$988.45

$556.54

$431.91

$110,877.05

16

$988.45

$554.39

$434.06

$110,442.99

17

$988.45

$552.21

$436.24

$110,006.75

18

$988.45

$550.03

$438.42

$109,568.34

19

$988.45

$547.84

$440.61

$109,127.73

20

$988.45

$545.64

$442.81

$108,684.92

21

$988.45

$543.42

$445.03

$108,239.89

22

$988.45

$541.20

$447.25

$107,792.64

23

$988.45

$538.96

$449.49

$107,343.15

24

$988.45

$536.72

$451.73

$106,891.42

25

$988.45

$534.46

$453.99

$106,437.43

26

$988.45

$532.19

$456.26

$105,981.16

27

$988.45

$529.91

$458.54

$105,522.62

28

$988.45

$527.61

$460.84

$105,061.78

29

$988.45

$525.31

$463.14

$104,598.64

30

$988.45

$522.99

$465.46

$104,133.18

31

$988.45

$520.67

$467.78

$103,665.40

32

$988.45

$518.33

$470.12

$103,195.28

33

$988.45

$515.98

$472.47

$102,722.80

34

$988.45

$513.61

$474.84

$102,247.97

35

$988.45

$511.24

$477.21

$101,770.76

36

$988.45

$508.85

$479.60

$101,291.16

37

$988.45

$506.46

$481.99

$100,809.17

38

$988.45

$504.05

$484.40

$100,324.76

39

$988.45

$501.62

$486.83

$99,837.94

40

$988.45

$499.19

$489.26

$99,348.68

41

$988.45

$496.74

$491.71

$98,856.97

42

$988.45

$494.28

$494.17

$98,362.80

43

$988.45

$491.81

$496.64

$97,866.17

44

$988.45

$489.33

$499.12

$97,367.05

45

$988.45

$486.84

$501.61

$96,865.43

46

$988.45

$484.33

$504.12

$96,361.31

47

$988.45

$481.81

$506.64

$95,854.67

48

$988.45

$479.27

$509.18

$95,345.49

49

$988.45

$476.73

$511.72

$94,833.77

50

$988.45

$474.17

$514.28

$94,319.49

51

$988.45

$471.60

$516.85

$93,802.64

52

$988.45

$469.01

$519.44

$93,283.20

53

$988.45

$466.42

$522.03

$92,761.16

54

$988.45

$463.81

$524.64

$92,236.52

55

$988.45

$461.18

$527.27

$91,709.25

56

$988.45

$458.55

$529.90

$91,179.35

57

$988.45

$455.90

$532.55

$90,646.80

58

$988.45

$453.23

$535.22

$90,111.58

59

$988.45

$450.56

$537.89

$89,573.69

60

$988.45

$447.87

$540.58

$89,033.11

61

$988.45

$556.46

$431.99

$88,601.11

62

$988.45

$553.76

$434.69

$88,166.42

63

$988.45

$551.04

$437.41

$87,729.01

64

$988.45

$548.31

$440.14

$87,288.87

65

$988.45

$545.56

$442.89

$86,845.97

66

$988.45

$542.79

$445.66

$86,400.31

67

$988.45

$540.00

$448.45

$85,951.86

68

$988.45

$537.20

$451.25

$85,500.61

69

$988.45

$534.38

$454.07

$85,046.54

70

$988.45

$531.54

$456.91

$84,589.63

71

$988.45

$528.69

$459.76

$84,129.87

72

$988.45

$525.81

$462.64

$83,667.23

73

$988.45

$522.92

$465.53

$83,201.70

74

$988.45

$520.01

$468.44

$82,733.26

75

$988.45

$517.08

$471.37

$82,261.89

76

$988.45

$514.14

$474.31

$81,787.58

77

$988.45

$511.17

$477.28

$81,310.30

78

$988.45

$508.19

$480.26

$80,830.04

79

$988.45

$505.19

$483.26

$80,346.78

80

$988.45

$502.17

$486.28

$79,860.49

81

$988.45

$499.13

$489.32

$79,371.17

82

$988.45

$496.07

$492.38

$78,878.79

83

$988.45

$492.99

$495.46

$78,383.33

84

$988.45

$489.90

$498.55

$77,884.78

∴ Loan balance immediately after the 84th payment = $77,884.78

and Amount of interest in the 84th payment = $489.90

.

HereI caliculated Inteerst per month for the period 1st to59 th :interest rate per annum = 6%= 6%/12= 0.5 % per monthand then from 60 th period toAnnual interest rate = 7.5/ 120.625 percent per monthI foud term value for mon as below...Actual patment 998.45 (given)Here interest has to be deduct ,so interest on laon amount forperiod 1 = 117134.8 *0.5% = 582.67so the remain value would be term value (fixed) = 998.45 -585.67 = 402.83Here by these figures have hilighted .....Please go through the file....care fully...Finally after 84 the payment the remaining laon amount would be 34100.8 as stated above....

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