A loan of £8,200 is to be repaid over a 11-year contract by three initial payments of £2,000, £2,000 and £4,000 at the end of years 2, 4 and 9, respectively.  Hence, find a final amount £X at the end of year 11 that needs to be paid to fully clear the debt given that the lender charges an annual nominal rate of interest of 9.0% convertible monthly. ( correct answer = 8972.45, no tables, please, ONLY formulas)

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Amortized Loans

The term "amortization" refers to spreading the value of a loan or a debt over a series of regular payments or installments comprising of both the principal and interest amount. It generally involves the process where in the value of a loan or an intangible asset is written down over its maturity period.