loan schedule

Discussion in 'CT1' started by Srijan Ghosh, Nov 4, 2014.

  1. Srijan Ghosh

    Srijan Ghosh Member

    I(12)=7.75% , monthly level instalments (EMI) 14612.884 , capital repaid in 16th instalment is 3433.056
    Then in order to calculate the term of the loan

    My sol :- 14612.884*(a)bar(12n-16)*(1-I)=3433.056

    Given solution (no clue how they got) :- 14612.884*v^(12n-15)

    Y they r bringing the last payment at time 15.......???? And wat is wrong with my solution
     
    Srijan Ghosh, Nov 4, 2014
    #1
  2. Muppet

    Muppet Member

    where's the qu?
     
    Muppet, Nov 4, 2014
    #2
  3. r_v.s

    r_v.s Member

    The instalment X = L/a_12n (thats given)

    Loan o/s after 15th instalment X*a_(12n-15)

    interest in the 16th payment is X*a_(12n-15)* i ,
    (here i is an effective monthly rate)

    capital repaid in 16th payment is X-X * a_(12n-15)*i
    = X(1-(1-v^(12n-15)/i)*i) = X*v^-(12n-15)

    I remember a general loan schedule given in the Acted notes and also an expression likes this for equal instalments, I think in one of the questions in that chapter!!
    Sorry I couldnt write out the equations better...
    hope this helps
     
    r_v.s, Nov 4, 2014
    #3

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