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

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

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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 ...

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