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    Excel Amortization

    Uploaded by

    Alie Dys
    Here are the solutions to the problems: 1. a) Original loan amount = P41,562.79 b) See amortization schedule above c) Remaining liability after 4th payment = P37,434.52 2. a) Number of payments = 16 b) Remaining liability after 6th payment = P34,025.95 c) Interest paid after 5 years = P15,000 d) See amortization schedule above 3. a) Semi-annual payment = P37,500 b) See sinking fund table 4. a) Amount in fund after 5 years = P1,500,000 b

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    Excel Amortization

    Uploaded by

    Alie Dys
    76 views12 pages
    Here are the solutions to the problems: 1. a) Original loan amount = P41,562.79 b) See amortization schedule above c) Remaining liability after 4th payment = P37,434.52 2. a) Number of payments = 16 b) Remaining liability after 6th payment = P34,025.95 c) Interest paid after 5 years = P15,000 d) See amortization schedule above 3. a) Semi-annual payment = P37,500 b) See sinking fund table 4. a) Amount in fund after 5 years = P1,500,000 b

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    Here are the solutions to the problems: 1. a) Original loan amount = P41,562.79 b) See amortization schedule above c) Remaining liability after 4th payment = P37,434.52 2. a) Number of payments = 16 b) Remaining liability after 6th payment = P34,025.95 c) Interest paid after 5 years = P15,000 d) See amortization schedule above 3. a) Semi-annual payment = P37,500 b) See sinking fund table 4. a) Amount in fund after 5 years = P1,500,000 b

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    76 views12 pages

    Excel Amortization

    Uploaded by

    Alie Dys
    Here are the solutions to the problems: 1. a) Original loan amount = P41,562.79 b) See amortization schedule above c) Remaining liability after 4th payment = P37,434.52 2. a) Number of payments = 16 b) Remaining liability after 6th payment = P34,025.95 c) Interest paid after 5 years = P15,000 d) See amortization schedule above 3. a) Semi-annual payment = P37,500 b) See sinking fund table 4. a) Amount in fund after 5 years = P1,500,000 b

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    You are on page 1of 12

    Amount borrowed 50,000

    Periods 8
    rate 0.03
    Payment ₱7,122.82

    Period Balance Payment Interest Paid(balance*rate)


    1 50,000 ₱7,122.82 1500.00
    2 ₱44,377.18 ₱7,122.82 1331.32
    3 ₱38,585.68 ₱7,122.82 1157.57
    4 ₱32,620.43 ₱7,122.82 978.61
    5 ₱26,476.22 ₱7,122.82 794.29
    6 ₱20,147.69 ₱7,122.82 604.43
    7 ₱13,629.30 ₱7,122.82 408.88
    8 ₱6,915.36 ₱7,122.82 207.46
    6982.56
    Problem
    A debt of P50,000 with interest at 12% compounded quarterly must be paid at the end of every
    3 months for 2 years.
    a. Find how much the amount of quarterly payment.
    b. Find the remaining liability just after making the 6th payment.
    c. Construct the amortization schedule.
    Payment for Principal(payment-interest) RL
    ₱5,622.82 ₱44,377.18
    ₱5,791.50 ₱38,585.68 Given: P = 50,000
    ₱5,965.25 ₱32,620.43
    ₱6,144.21 ₱26,476.22 a. Quarterly Payment
    ₱6,328.53
    P=7122.82
    𝑅=(50,000×0.03)/(1−(1.03)^(−8) ) ₱20,147.69
    ₱6,518.39
    (1−(1.03)^(−2))/0.03 ₱13,629.30
    ₱6,713.94 ₱6,915.36
    𝑹=𝟕,𝟏𝟐𝟐.𝟖𝟐 ₱6,915.36 𝑷=𝟏𝟑,𝟔𝟐𝟗.𝟑𝟎 ₱0.00
    i = 0.12/4 n = 2*4

    b. remaining liability after 6th payment


    Problem
    Alfred borrows P50,000 at 16% compounded semi-annually. He agreed to pay his debt by
    paying P5,000 every 6 months. A final smaller payment is to be made after the last regular
    payment.

    How to find n? Equation of value:


    𝑛= 〖− log 〗⁡[1−𝑃𝑖/𝑅]/log⁡(1+𝑖) 𝑥=𝑃(1+𝑖)^𝑛−𝑅[((1+𝑖)^(𝑛−1)−1)/𝑖 (1+𝑖)]

    Soilutions:
    Given: A = 50,000 R = 5,000 i = 0.16/2

    𝑛= 〖− log 〗⁡[1−(50,000×0.08)/5000]/log⁡(1+0.08)
    𝑥=50,000(1+0.08)^21−5,000[((1+0.08)^(21−

    𝒏=𝟐𝟎.𝟗𝟏 𝒙=𝑷𝟒,𝟓𝟕𝟕.𝟎𝟖
    𝑛−1)−1)/𝑖 (1+𝑖)]

    00[((1+0.08)^(21−1)−1)/0.08 (1+0.08)]
    Amount borrowed 50,000
    Periods 20.91
    rate 0.08
    Payment ₱5,000.00

    Period Balance Payment Interest Paid Payment for Principal


    1 50,000 ₱5,000.00 4000.00 ₱1,000.00
    2 ₱49,000.00 ₱5,000.00 3920.00 ₱1,080.00
    3 ₱47,920.00 ₱5,000.00 3833.60 ₱1,166.40
    4 ₱46,753.60 ₱5,000.00 3740.29 ₱1,259.71
    5 ₱45,493.89 ₱5,000.00 3639.51 ₱1,360.49
    6 ₱44,133.40 ₱5,000.00 3530.67 ₱1,469.33
    7 ₱42,664.07 ₱5,000.00 3413.13 ₱1,586.87
    8 ₱41,077.20 ₱5,000.00 3286.18 ₱1,713.82
    9 ₱39,363.37 ₱5,000.00 3149.07 ₱1,850.93
    10 ₱37,512.44 ₱5,000.00 3001.00 ₱1,999.00
    11 ₱35,513.44 ₱5,000.00 2841.08 ₱2,158.92
    12 ₱33,354.51 ₱5,000.00 2668.36 ₱2,331.64
    13 ₱31,022.87 ₱5,000.00 2481.83 ₱2,518.17
    14 ₱28,504.70 ₱5,000.00 2280.38 ₱2,719.62
    15 ₱25,785.08 ₱5,000.00 2062.81 ₱2,937.19
    16 ₱22,847.89 ₱5,000.00 1827.83 ₱3,172.17
    17 ₱19,675.72 ₱5,000.00 1574.06 ₱3,425.94
    18 ₱16,249.77 ₱5,000.00 1299.98 ₱3,700.02
    19 ₱12,549.76 ₱5,000.00 1003.98 ₱3,996.02
    20 ₱8,553.74 ₱5,000.00 684.30 ₱4,315.70
    21 ₱4,238.04 ₱4,577.08 339.04 ₱4,238.04
    ₱4,660.96
    Problem

    A fund is created by making equal quarterly deposits of P10,000 at 12% compounded


    quarterly.
    a. determine the sum at the end of 2 years.
    b. What is the amount in the fund after 5th deposit?
    c. Construct the sinking fund schedule for 2 years.

    Given: R = 10,000 i = 0.12/4 n = 4*2

    a. Future Value b. after 5th deposit


    𝐹=10,000 ((1+0.03)^8−1)/0.03 𝐹=10,000 ((1+0.03)^5−1)/0.03

    𝑭=𝟖𝟖,𝟗𝟐𝟑.𝟑𝟔 𝑭=𝟓𝟑,𝟎𝟗𝟏.𝟑𝟏
    Periods 8
    rate 0.03
    Payment ₱10,000.00

    In Fund at the
    Period Interest Payment In Fund at the End
    Beginning
    1 ₱10,000.00 ₱10,000.00
    2 ₱10,000.00 ₱300.00 ₱10,000.00 ₱20,300.00
    3 ₱20,300.00 ₱609.00 ₱10,000.00 ₱30,909.00
    4 ₱30,909.00 ₱927.27 ₱10,000.00 ₱41,836.27
    5 ₱41,836.27 ₱1,255.09 ₱10,000.00 ₱53,091.36
    6 ₱53,091.36 ₱1,592.74 ₱10,000.00 ₱64,684.10
    7 ₱64,684.10 ₱1,940.52 ₱10,000.00 ₱76,624.62
    8 ₱76,624.62 ₱2,298.74 ₱10,000.00 ₱88,923.36
    1. A loan will be discharged, principal and interest included at 18% payable semi-annually by payments of P5,000
    the end of each six months for 8 years. (a)Find the original loan. (b) Make the amortization schedule. (c) Find the
    remaining liability of debtor just after 4th payment?

    2. Sam obtains P50,000 loan to be paid in annual payments of P5,000. If the creditor charges 6% effective:
    a. how many regular payments will be required?
    b. find he remaining liability just after the 6th payment?
    c. how much interest is paid at the end of 5 years?
    d. construct amortization table

    3. Patric wants to have P1,500,00 in 7 years to buy a farm. He plans to make a sinking fund by depositing an amou
    every 6 months. If the fund earns 18% compounded semi-annually,
    a. find the semi-annual payments
    b. construct sinking fund table.

    4. At the end of every 6 months Dennis invests P5,000 in a sinking fund at 24% compounded semi-annually. At th
    end of 5 years, the amount in the fund is just enough to pay off the principal of his interest-bearing loan at 15%
    compounded semi-annually. Dennis pays the interest on the loan at the end of every semi-annum.
    a. how much is in the fund at the end of 5 years?
    b. determine the periodic expense of his loan
    c. find the book value of the debt after the 6th deposit.
    ually by payments of P5,000 at
    ation schedule. (c) Find the

    harges 6% effective:

    fund by depositing an amount

    ounded semi-annually. At the


    erest-bearing loan at 15%
    mi-annum.
    Balance ₱41,562.79
    Payment 5000
    Period 16
    interest 0.09

    Period Balance Payment Interest Paid Payment for Principal


    1 ₱41,562.79 5000 ₱3,740.65 ₱1,259.35
    2 ₱40,303.44 5000 ₱3,627.31 ₱1,372.69
    3 ₱38,930.75 5000 ₱3,503.77 ₱1,496.23
    4 ₱37,434.52 5000 ₱3,369.11 ₱1,630.89
    5 ₱35,803.63 5000 ₱3,222.33 ₱1,777.67
    6 ₱34,025.95 5000 ₱3,062.34 ₱1,937.66
    7 ₱32,088.29 5000 ₱2,887.95 ₱2,112.05
    8 ₱29,976.23 5000 ₱2,697.86 ₱2,302.14
    9 ₱27,674.10 5000 ₱2,490.67 ₱2,509.33
    10 ₱25,164.76 5000 ₱2,264.83 ₱2,735.17
    11 ₱22,429.59 5000 ₱2,018.66 ₱2,981.34
    12 ₱19,448.26 5000 ₱1,750.34 ₱3,249.66
    13 ₱16,198.60 5000 ₱1,457.87 ₱3,542.13
    14 ₱12,656.47 5000 ₱1,139.08 ₱3,860.92
    15 ₱8,795.56 5000 ₱791.60 ₱4,208.40
    16 ₱4,587.16 5000 ₱412.84 ₱4,587.16

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