nvestor is paying £467.28 monthly instalments in arrears to a lender in order to service a 5-year loan, which was taken out to finance a short term investment. Assuming a nominal annual rate of interest of 7.9% convertible monthly is applicable to this loan, calculate the initial amount of capital borrowed, the loan outstanding immediately after the 30th instalment and The amount of interest content of the 31th instalment, (NO tables, only formulas, please)

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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.