Suppose you borrowed $10, 000 at an interest rate of 12% compounded monthly over 48 months. At the end of the first year (after 12 payments), you want to negotiate with the bank to pay off the remainder of the loan in 12 equal quarterly payments. What quarterly payment must be made if the nominal interest rate (12%) and compounding frequency (monthly) remain the same?

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Q: What is the monthly payment to repay a 10 year loan of $200,000 at a nominal rate of 15% per year if…

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A: Interest payable = Opening Balance * Monthly interest rate

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A: Computation: Hence, the repayment amount is $401.84 per annum.