Find the equal quarterly payment amount. ii. Draw the amortization schedule for the loan repayment. iii. What is the interest portion paid on the 10th payment? iv. What is the total interest paid after the 25th payment? v. What is the amount of capital portion in the 54th payment?

Find the equal quarterly payment amount. ii. Draw the amortization schedule for the loan repayment. iii. What is the interest portion paid on the 10th payment? iv. What is the total interest paid after the 25th payment? v. What is the amount of capital portion in the 54th payment?

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section4.17: Amortized Loans

Problem 1ST

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Question

Question 2
A loan of £ 2,120,000 is repayable by equal quarterly payments for 15 years. The effective
rate of interest is 6% pa.
REQUIRED
i. Find the equal quarterly payment amount.
ii. Draw the amortization schedule for the loan repayment.
iii. What is the interest portion paid on the 10th payment?
iv. What is the total interest paid after the 25th payment?
v. What is the amount of capital portion in the 54th payment?

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