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Loan amortization, annuity and repayment of outstanding balance: calculate payment

A) Calculate the monthly repayments on a $20,000 loan if interest rates are 12% p.a. compounded monthly, and it is to be repaid in equal instalments over 2.5 years.

b) What balance is outstanding immediately after the 18th payment is made?

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Refer to attachment.

a) Calculate the monthly repayments on a $20,000 loan if interest rates are 12% p.a. compounded monthly, and it is to be repaid in equal instalments over 2.5 years.

b) What balance is outstanding immediately after the 18th payment ...

Solution Summary

The solution shows the formulas and the computations to solve the amount of the balance after the 18th payment is made.

$2.19