Mzomuhle takes out a personal loan of R439200,00 to help finance the building of his holiday house.The terms of his loan specify equal three-monthly repayments over five years, with13,2% interest per annum, compounded quarterly.The first payment is made three months after the loan was taken out. First find the size of the three-monthly payments.Then considering the amortisation schedule,find the total interest charged over the first year of repayments.
We will find it by the formula:
"\u0410=S\\times(\\dfrac{r}{(1+r)^n-1})"
S= 439 200
Since the payment is quarterly, we will change the rate and the number of periods accordingly
"r=\\dfrac{0.132}{4}=0.033"
"n=4\\times5=20"
"\u0410=S\\times(\\dfrac{r}{(1+r)^n-1})=439 200\\times(\\dfrac{0.033}{(1+0.033)^{20}-1})=15 852.40"
Comments
Leave a comment