Question

A loan of R1 000 is granted at an interest rate of 16% p.a. compounded monthly. The loan is to be amortised by means of ten consecutive, equal monthly payments starting one and a half years after the granting of the loan. The balance outstanding on the loan (to the nearest cent) immediately after the seventh monthly payment has been made is equal to R

Answer 1

$$P×{(1+{r\over12})^n-(1+{r\over12})^m\over(1+{r\over12})^n-1}$$

$$1000×{(1+{7\over 25})^{10}-(1+{7\over25})^{7}\over(1+{7\over25})^{10}-1}$$

$$=572$$