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    Calculation of Simple Interest On Reducing Balance

    Uploaded by

    Isabeau Jane Salvatore St-Pierre
    The document shows a calculation of simple interest on a reducing balance over 12 months with an annual interest rate of 9.5% and original balance of $100,000. Each month interest is calculated on the remaining balance and subtracted along with a payment of $8,768.35, reducing the principal balance until it reaches 0 after 12 months.

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    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd

    Calculation of Simple Interest On Reducing Balance

    Uploaded by

    Isabeau Jane Salvatore St-Pierre
    68 views12 pages
    The document shows a calculation of simple interest on a reducing balance over 12 months with an annual interest rate of 9.5% and original balance of $100,000. Each month interest is calculated on the remaining balance and subtracted along with a payment of $8,768.35, reducing the principal balance until it reaches 0 after 12 months.

    Original Title

    Calculation-of-Simple-Interest-on-Reducing-Balance

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    The document shows a calculation of simple interest on a reducing balance over 12 months with an annual interest rate of 9.5% and original balance of $100,000. Each month interest is calculated on the remaining balance and subtracted along with a payment of $8,768.35, reducing the principal balance until it reaches 0 after 12 months.

    Copyright:

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

    Calculation of Simple Interest On Reducing Balance

    Uploaded by

    Isabeau Jane Salvatore St-Pierre
    The document shows a calculation of simple interest on a reducing balance over 12 months with an annual interest rate of 9.5% and original balance of $100,000. Each month interest is calculated on the remaining balance and subtracted along with a payment of $8,768.35, reducing the principal balance until it reaches 0 after 12 months.

    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

    Calculation of Simple Interest on Reducing Balance

    Annual Interest Rate 9.50%


    Years 1
    Number of Payment Per Year 12
    Original Balance $ 100,000.00

    Month Payment Interest Principal Balance


    0 $ 100,000.00
    1 ($8,768.35) ($791.67) ($7,976.68) $ 92,023.32
    2 ($8,768.35) ($728.52) ($8,039.83) $ 83,983.48
    3 ($8,768.35) ($664.87) ($8,103.48) $ 75,880.00
    4 ($8,768.35) ($600.72) ($8,167.63) $ 67,712.37
    5 ($8,768.35) ($536.06) ($8,232.29) $ 59,480.07
    6 ($8,768.35) ($470.88) ($8,297.47) $ 51,182.60
    7 ($8,768.35) ($405.20) ($8,363.16) $ 42,819.45
    8 ($8,768.35) ($338.99) ($8,429.36) $ 34,390.08
    9 ($8,768.35) ($272.25) ($8,496.10) $ 25,893.99
    10 ($8,768.35) ($204.99) ($8,563.36) $ 17,330.63
    11 ($8,768.35) ($137.20) ($8,631.15) $ 8,699.48
    12 ($8,768.35) ($68.87) ($8,699.48) 0.00
    << Try Yourself >>

    Annual Interest Rate


    Years
    Number of Payment Per Year
    Original Balance

    Month Payment
    0
    1
    2
    3
    4
    5
    6
    7
    8
    9
    10
    11
    12
    << Try Yourself >>

    Annual Interest Rate 9.50%


    Years 1
    mber of Payment Per Year 12
    Original Balance $ 100,000.00

    Interest Principal Balance


    $ 100,000.00
    Application of PMT Function

    Annual Interest Rate 9.50%


    Years 1
    Number of Payment Per Year 12
    Original Balance $ 100,000.00

    Month Payment Interest Principal Balance


    0 $ 100,000.00
    1 ($8,768.35)
    2 ($8,768.35)
    3 ($8,768.35)
    4 ($8,768.35)
    5 ($8,768.35)
    6 ($8,768.35)
    7 ($8,768.35)
    8 ($8,768.35)
    9 ($8,768.35)
    10 ($8,768.35)
    11 ($8,768.35)
    12 ($8,768.35)
    << Try Yourself >

    Annual Interest Rate


    Years
    Number of Payment Per Year
    Original Balance

    Month Payment
    0
    1
    2
    3
    4
    5
    6
    7
    8
    9
    10
    11
    12
    << Try Yourself >>

    Annual Interest Rate 9.50%


    Years 1
    ber of Payment Per Year 12
    Original Balance $ 100,000.00

    Interest Principal Balance


    ###
    Use of IPMT Function

    Annual Interest Rate 9.50%


    Years 1
    Number of Payment Per Year 12
    Original Balance $ 100,000.00

    Month Payment Interest Principal Balance


    0 $ 100,000.00
    1 ($8,768.35) ($791.67)
    2 ($8,768.35) ($728.52)
    3 ($8,768.35) ($664.87)
    4 ($8,768.35) ($600.72)
    5 ($8,768.35) ($536.06)
    6 ($8,768.35) ($470.88)
    7 ($8,768.35) ($405.20)
    8 ($8,768.35) ($338.99)
    9 ($8,768.35) ($272.25)
    10 ($8,768.35) ($204.99)
    11 ($8,768.35) ($137.20)
    12 ($8,768.35) ($68.87)
    #DIV/0!
    Application of PPMT Function

    Annual Interest Rate 9.50%


    Years 1
    Number of Payment Per Year 12
    Original Balance $ 100,000.00

    Month Payment Interest Principal Balance


    0 $ 100,000.00
    1 ($8,768.35) ($791.67) ($7,976.68)
    2 ($8,768.35) ($728.52) ($8,039.83)
    3 ($8,768.35) ($664.87) ($8,103.48)
    4 ($8,768.35) ($600.72) ($8,167.63)
    5 ($8,768.35) ($536.06) ($8,232.29)
    6 ($8,768.35) ($470.88) ($8,297.47)
    7 ($8,768.35) ($405.20) ($8,363.16)
    8 ($8,768.35) ($338.99) ($8,429.36)
    9 ($8,768.35) ($272.25) ($8,496.10)
    10 ($8,768.35) ($204.99) ($8,563.36)
    11 ($8,768.35) ($137.20) ($8,631.15)
    12 ($8,768.35) ($68.87) ($8,699.48)
    #DIV/0!
    Calculation of Simple Interest on Reducing Balance

    Annual Interest Rate 9.50%


    Years 1
    Number of Payment Per Year 12
    Original Balance $ 100,000.00

    Month Payment Interest Principal Balance


    0 $ 100,000.00
    1 ($8,768.35) ($791.67) ($7,976.68) $ 92,023.32
    2 ($8,768.35) ($728.52) ($8,039.83) $ 83,983.48
    3 ($8,768.35) ($664.87) ($8,103.48) $ 75,880.00
    4 ($8,768.35) ($600.72) ($8,167.63) $ 67,712.37
    5 ($8,768.35) ($536.06) ($8,232.29) $ 59,480.07
    6 ($8,768.35) ($470.88) ($8,297.47) $ 51,182.60
    7 ($8,768.35) ($405.20) ($8,363.16) $ 42,819.45
    8 ($8,768.35) ($338.99) ($8,429.36) $ 34,390.08
    9 ($8,768.35) ($272.25) ($8,496.10) $ 25,893.99
    10 ($8,768.35) ($204.99) ($8,563.36) $ 17,330.63
    11 ($8,768.35) ($137.20) ($8,631.15) $ 8,699.48
    12 ($8,768.35) ($68.87) ($8,699.48) 0.00
    #DIV/0!

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