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Example 1

The document outlines two loan repayment methods for a $1000 loan at 10% interest over 5 years, detailing the outstanding balance, interest, and principal payments for each year. It also describes a separate loan of 80 mVND at 12% interest over 2 years, comparing monthly payments of principal and interest versus even principal payments. Each method provides a breakdown of payments and remaining balances over the specified periods.

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Vy Mai
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24 views3 pages

Example 1

The document outlines two loan repayment methods for a $1000 loan at 10% interest over 5 years, detailing the outstanding balance, interest, and principal payments for each year. It also describes a separate loan of 80 mVND at 12% interest over 2 years, comparing monthly payments of principal and interest versus even principal payments. Each method provides a breakdown of payments and remaining balances over the specified periods.

Uploaded by

Vy Mai
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Debt 1000 USD

r 10% /year
n 5 years

1. Pay loan/principal evenly


Year 0 1 2 3 4 5
outstanding balance at the beginning 1000 800 600 400 200
Interest arising 100 80 60 40 20
Payment: 300 280 260 240 220
principal 200 200 200 200 200
interest 100 80 60 40 20
outstanding balance at the end 1000 800 600 400 200 0

2. Pay (principal + interest) evenly


Year 0 1 2 3 4 5
outstanding balance at the beginning 1000 836 656 458 240
Interest arising 100 84 66 46 24
Payment: 264 264 264 264 264
principal 164 180 198 218 240
interest 100 84 66 46 24
outstanding balance at the end 1000 836 656 458 240 0

Loan 80 mVND
n 2 years
yr 12% /year 1% ?/month

1. Pay monthly loan/principal evenly


Month 0 1 2 3 4 5
outstanding balance at the beginning 80.0 76.7 73.3 70.0 66.7
Interest arising 0.8 0.8 0.7 0.7 0.7
Payment: 4.1 4.1 4.1 4.0 4.0
principal 3.3 3.3 3.3 3.3 3.3
interest 0.8 0.8 0.7 0.7 0.7
outstanding balance at the end 80 76.7 73.3 70.0 66.7 63.3

2. Pay monthly (principal + interest) evenly


Month 0 1 2 3 4 5
outstanding balance at the beginning 80.0 77.0 74.0 71.0 68.0
Interest arising 0.8 0.8 0.7 0.7 0.7
Payment: 3.8 3.8 3.8 3.8 3.8
principal 3.0 3.0 3.0 3.1 3.1
interest 0.8 0.8 0.7 0.7 0.7
outstanding balance at the end 80 77.0 74.0 71.0 68.0 64.9
6 7 8 9 10 11 12 13 14 15
63.3 60.0 56.7 53.3 50.0 46.7 43.3 40.0 36.7 33.3
0.6 0.6 0.6 0.5 0.5 0.5 0.4 0.4 0.4 0.3
4.0 3.9 3.9 3.9 3.8 3.8 3.8 3.7 3.7 3.7
3.3 3.3 3.3 3.3 3.3 3.3 3.3 3.3 3.3 3.3
0.6 0.6 0.6 0.5 0.5 0.5 0.4 0.4 0.4 0.3
60.0 56.7 53.3 50.0 46.7 43.3 40.0 36.7 33.3 30.0

6 7 8 9 10 11 12 13 14 15
64.9 61.8 58.6 55.4 52.2 49.0 45.7 42.4 39.0 35.7
0.6 0.6 0.6 0.6 0.5 0.5 0.5 0.4 0.4 0.4
3.8 3.8 3.8 3.8 3.8 3.8 3.8 3.8 3.8 3.8
3.1 3.1 3.2 3.2 3.2 3.3 3.3 3.3 3.4 3.4
0.6 0.6 0.6 0.6 0.5 0.5 0.5 0.4 0.4 0.4
61.8 58.6 55.4 52.2 49.0 45.7 42.4 39.0 35.7 32.3
16 17 18 19 20 21 22 23 24
30.0 26.7 23.3 20.0 16.7 13.3 10.0 6.7 3.3
0.3 0.3 0.2 0.2 0.2 0.1 0.1 0.1 0.0
3.6 3.6 3.6 3.5 3.5 3.5 3.4 3.4 3.4
3.3 3.3 3.3 3.3 3.3 3.3 3.3 3.3 3.3
0.3 0.3 0.2 0.2 0.2 0.1 0.1 0.1 0.0
26.7 23.3 20.0 16.7 13.3 10.0 6.7 3.3 0.0

16 17 18 19 20 21 22 23 24
32.3 28.8 25.3 21.8 18.3 14.7 11.1 7.4 3.7
0.3 0.3 0.3 0.2 0.2 0.1 0.1 0.1 0.0
3.8 3.8 3.8 3.8 3.8 3.8 3.8 3.8 3.8
3.4 3.5 3.5 3.5 3.6 3.6 3.7 3.7 3.7
0.3 0.3 0.3 0.2 0.2 0.1 0.1 0.1 0.0
28.8 25.3 21.8 18.3 14.7 11.1 7.4 3.7 0.0

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