Annuity : Annuity is the amount paid in equal installments after fixed time intervals (usually months) to repay a loan. It consist a part of the principal as well as Interest on the outstanding principal. Initially in the Annuity, The interest portion is bigger than the portion of outstanding principal and it keeps reversing over the tenure of loan. The loan is fully settled after the last installment. To Calculate: The portion of principal and interest in the 51 s t installment.

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Chapter 5, Problem 18P

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Annuity: Annuity is the amount paid in equal installments after fixed time intervals (usually months) to repay a loan. It consist a part of the principal as well as Interest on the outstanding principal. Initially in the Annuity, The interest portion is bigger than the portion of outstanding principal and it keeps reversing over the tenure of loan. The loan is fully settled after the last installment.

To Calculate: The portion of principal and interest in the 51^s^t installment.

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