Year 2010 Q2

A mortgage loan of RM300,000 was obtained at a compound interest rate of 4% for 20

years. Base on the information:
i) Calculate the monthly installment amount
ii)What is the amount outstanding at the end of 14 years?
iii)If the interest rate for the above mortgage increased to 6% after 14 years,
calculate the new monthly installment payable
iv)Calculate the remaining term if the initial installment is maintained.
Answer:
i)
Calculate the monthly installment amount
Loan: RM300,000
Interest: 4% per annum = 4/12% per month =0.3333% per month =
Loan duration: 20 years = 20x12 = 240 months
Monthly installment = (Loan) (1+i)n ( i)
(1+i)n-1

Loan = 300,000, i= 4/12/100 = 0.003333 per month, n=240

Use i=0.003333
Monthly installment ={ 300000 (1+0.003333) 240 0.003333}
{ (1+0.0033) 240-1}
= {300000 1.003333 240 0.003333}
{ 1.003333 240-1}
=1817.88
Calculator Keystroke:
(300000 (1+0.003333)xy240 0.003333) ((1+0.003333)xy240-1) OR
(300000 1.003333xy240 0.003333) (1.003333xy240-1)
Red color = calculator symbol

ii)

What is the amount outstanding at the end of 14 years?

Initial Loan duration = 20 years
Remaining duration = 20-14 = 6 years = 6x12 = 72 months.
Method 1: Finding Outstanding Balance(OSB) using Monthly Installment

OSB = (Monthly Installment)

1 .
(1+i)n
i

n=72 months, i= 4/12/100 per month = 0.003333 per month

Use i=0.003333
OSB = (1817.88)

1
.
{1+0.003333}72
{0.003333}

= (1817.88)

1
1.00333372
0.003333

= 116,195.58
Calculator Keystroke
(1817.88) (1-1 (1+0.003333)xy72) (0.003333) OR
1817.88 (1-1 1.003333xy72) 0.003333
Red color = calculator symbol
Blue color = optional calculator symbol. Not necessary, but put in to avoid confusion

Method 2: Finding Outstanding Balance(OSB) using Yearly Installment

(not accurate)
a) Find Yearly Installment
Loan: RM300,000, Interest: 4% per annum=4/100=0.04 per annum,
Loan duration: 20 years
Yearly Installment = (Loan) (1+i)n ( i)
(1+i)n-1
= {300000 (1+0.04)20 0.04}
{(1+0.04)20-1}
= {300000 1.0420 0.04}
{1.0420-1}
= 22,074.53
Calculator Keystroke:
(300000 (1+0.04)xy20 0.04) ((1+0.04)xy20-1) OR
(300000 1.04xy20 0.04) (1.04xy20-1)
b) Calculate Outstanding Balance Using Yearly Installment
Initial Loan duration = 20 years
Remaining duration = 20-14 = 6 years
OSB = (Yearly Installment)

1 .
(1+i)n
i

n=6 years, i= 4% per annum = 0.04 per annum

Using i= 0.04
OSB = (22074.53)
1
1
.
(1+0.04)6
0.04

OSB = (22074.53)

1
1.046
0.04

= 115,717.71
Calculator Keystroke:
22074.53 (1-1 (1+0.04)xy6) 0.04 OR
22074.53 (1-1 1.04xy6) 0.04

iii) Calculate new monthly installment payable if mortgage increase to 6% after 14 years.
Outstanding Balance: (from Part(ii) Answer Using Method 1)
OSB = 116,195.58 (using i= 0.003333)
New Interest: 6% per annum = 6/12% per month = 0.005 per month
Loan balance duration: 20-14 years = 6 years = 6x12 months= 72months
Monthly installment = (Loan) (1+i)n ( i)
(1+i)n-1
\
Using OSB = 116,195.58, new i = 6/12/100 = 0.005 per month, n=72
New Monthly installment ={ 116195.58 (1+0.005) 72 0.005}
{ (1+0.005) 72-1}
={ 116195.58 1.005 72 0.005}
{ 1.005 72-1}
= 1925.70

Calculator Keystroke
(116195.58 (1+0.005)xy72 0.005) ((1+0.005)xy72-1) OR
(116195.58 1.005xy72 0.005) (1.005xy72-1)
Red color = calculator symbol

iv)

Calculate the remaining term if the initial installment is maintained.

Method 1: Exact Method

Monthly installment, MI = (Loan) (1+i)n ( i)
(1+i)n-1
Re-arrange the formula, to make n the topic:
n = log( 1 (Loan)(i)/(MI))
log(1+i)
Using i=0.003333
Original Monthly Installment = 1817.88
OSB = 116,195.58
New Interest Rate = 6% per annum = 6/12% per month =0.005 per month
n = log(1-116195.58 0.005/1817.88)
log(1+0.005)
= log(1-116195.58 0.005/1817.88)
log(1.005)
= 77.2

Calculator Keystroke
log(1-116195.58 0.005 1817.88) log(1+0.005) OR
log(1-116195.58 0.005 1817.88) log(1.005)
Method 2: Rough Estimation (not accurate)
No of remaining Installment
=( New Monthly Installment )( Remaining No of Payment)
Initial Monthly Installment
= (1925.70) (72) == 76.3 number of Installment
1817.88

Table 1: Part 1
Original Loan Monthly Installment Schedule
Original Interest
0.333333333 % per month
No Principal
Interest
Payment
Remainder
1
300000.00
1000.00
1817.94
299182.06
2
299182.06
997.27
1817.94
298361.39
3
298361.39
994.54
1817.94
297537.99
4
297537.99
991.79
1817.94
296711.84
5
296711.84
989.04
1817.94
295882.94
6
295882.94
986.28
1817.94
295051.27
7
295051.27
983.50
1817.94
294216.84
8
294216.84
980.72
1817.94
293379.62
9
293379.62
977.93
1817.94
292539.61
10
292539.61
975.13
1817.94
291696.80
11
291696.80
972.32
1817.94
290851.18
12
290851.18
969.50
1817.94
290002.75
13
290002.75
966.68
1817.94
289151.48
14
289151.48
963.84
1817.94
288297.38
15
288297.38
960.99
1817.94
287440.43
16
287440.43
958.13
1817.94
286580.62
17
286580.62
955.27
1817.94
285717.95
18
285717.95
952.39
1817.94
284852.40
19
284852.40
949.51
1817.94
283983.97
20
283983.97
946.61
1817.94
283112.64
21
283112.64
943.71
1817.94
282238.41
22
282238.41
940.79
1817.94
281361.26
23
281361.26
937.87
1817.94
280481.19
24
280481.19
934.94
1817.94
279598.19
25
279598.19
931.99
1817.94
278712.24
26
278712.24
929.04
1817.94
277823.34
27
277823.34
926.08
1817.94
276931.48
28
276931.48
923.10
1817.94
276036.64
29
276036.64
920.12
1817.94
275138.82
30
275138.82
917.13
1817.94
274238.01
31
274238.01
914.13
1817.94
273334.20
32
273334.20
911.11
1817.94
272427.37
33
272427.37
908.09
1817.94
271517.52
34
271517.52
905.06
1817.94
270604.64
35
270604.64
902.02
1817.94
269688.71
36
269688.71
898.96
1817.94
268769.74
37
268769.74
895.90
1817.94
267847.69
38
267847.69
892.83
1817.94
266922.58
39
266922.58
889.74
1817.94
265994.38
40
265994.38
886.65
1817.94
265063.09
41
265063.09
883.54
1817.94
264128.69
42
264128.69
880.43
1817.94
263191.18
43
263191.18
877.30
1817.94
262250.54
44
262250.54
874.17
1817.94
261306.77
45
261306.77
871.02
1817.94
260359.85
46
260359.85
867.87
1817.94
259409.77
47
259409.77
864.70
1817.94
258456.53
48
258456.53
861.52
1817.94
257500.11
49
257500.11
858.33
1817.94
256540.51
50
256540.51
855.14
1817.94
255577.70
51
255577.70
851.93
1817.94
254611.68
52
254611.68
848.71
1817.94
253642.45
53
253642.45
845.47
1817.94
252669.98
54
252669.98
842.23
1817.94
251694.27
55
251694.27
838.98
1817.94
250715.31
56
250715.31
835.72
1817.94
249733.09
57
249733.09
832.44
1817.94
248747.59
58
248747.59
829.16
1817.94
247758.81
59
247758.81
825.86
1817.94
246766.73
60
246766.73
822.56
1817.94
245771.35
61
245771.35
819.24
1817.94
244772.65
62
244772.65
815.91
1817.94
243770.61
63
243770.61
812.57
1817.94
242765.24
64
242765.24
809.22
1817.94
241756.52
65
241756.52
805.86
1817.94
240744.43
66
240744.43
802.48
1817.94
239728.97
67
239728.97
799.10
1817.94
238710.13
68
238710.13
795.70
1817.94
237687.89
69
237687.89
792.29
1817.94
236662.24
70
236662.24
788.87
1817.94
235633.17
71
235633.17
785.44
1817.94
234600.67
72
234600.67
782.00
1817.94
233564.74
73
233564.74
778.55
1817.94
232525.34
74
232525.34
775.08
1817.94
231482.49
75
231482.49
771.61
1817.94
230436.15
76
230436.15
768.12
1817.94
229386.33
77
229386.33
764.62
1817.94
228333.01
78
228333.01
761.11
1817.94
227276.18
79
227276.18
757.59
1817.94
226215.83
80
226215.83
754.05
1817.94
225151.94
81
225151.94
750.51
1817.94
224084.51
82
224084.51
746.95
1817.94
223013.51
83
223013.51
743.38
1817.94
221938.95
84
221938.95
739.80
1817.94
220860.81
85
220860.81
736.20
1817.94
219779.07
86
219779.07
732.60
1817.94
218693.73
87
218693.73
728.98
1817.94
217604.76
88
217604.76
725.35
1817.94
216512.17
89
216512.17
721.71
1817.94
215415.94
90
215415.94
718.05
1817.94
214316.05
91
214316.05
714.39
1817.94
213212.50
92
213212.50
710.71
1817.94
212105.26
93
212105.26
707.02
1817.94
210994.34
94
210994.34
703.31
1817.94
209879.71
95
209879.71
699.60
1817.94
208761.37
96
208761.37
695.87
1817.94
207639.30
97
207639.30
692.13
1817.94
206513.49
98
206513.49
688.38
1817.94
205383.93
99
205383.93
684.61
1817.94
204250.60
100
204250.60
680.84
1817.94
203113.50
101
203113.50
677.04
1817.94
201972.60
102
201972.60
673.24
1817.94
200827.90
103
200827.90
669.43
1817.94
199679.39
104
199679.39
665.60
1817.94
198527.04
105
198527.04
661.76
1817.94
197370.86
106
197370.86
657.90
1817.94
196210.82
107
196210.82
654.04
1817.94
195046.92
108
195046.92
650.16
1817.94
193879.13
109
193879.13
646.26
1817.94
192707.45
110
192707.45
642.36
1817.94
191531.87
111
191531.87
638.44
1817.94
190352.37
112
190352.37
634.51
1817.94
189168.94
113
189168.94
630.56
1817.94
187981.56
114
187981.56
626.61
1817.94
186790.22
115
186790.22
622.63
1817.94
185594.92
116
185594.92
618.65
1817.94
184395.62
117
184395.62
614.65
1817.94
183192.34
118
183192.34
610.64
1817.94
181985.04
119
181985.04
606.62
1817.94
180773.71

Loan: 300k,
Installment: 1817.94
Interest: 0.003333333
Monthly rest

Table 1: Part 2
120
121
122
123
124
125
126
127
128
129
130
131
132
133
134
135
136
137
138
139
140
141
142
143
144
145
146
147
148
149
150
151
152
153
154
155
156
157
158
159
160
161
162
163
164
165
166
167
168
169
170
171
172
173
174
175
176
177
178
179
180
181
182
183
184
185
186
187
188
189
190
191
192
193
194
195
196
197
198
199
200
201
202
203
204
205
206
207
208
209
210
211
212
213
214
215
216
217
218
219
220
221
222
223
224
225
226
227
228
229
230
231
232
233
234
235
236
237
238
239
240

180773.71
179558.35
178338.94
177115.46
175887.90
174656.25
173420.50
172180.63
170936.62
169688.47
168436.16
167179.67
165918.99
164654.12
163385.02
162111.70
160834.13
159552.30
158266.20
156975.82
155681.13
154382.12
153078.79
151771.11
150459.07
149142.66
147821.86
146496.66
145167.04
143832.99
142494.50
141151.54
139804.10
138452.17
137095.74
135734.78
134369.29
132999.25
131624.64
130245.45
128861.66
127473.26
126080.23
124682.55
123280.22
121873.21
120461.52
119045.11
117623.99
116198.13
114767.51
113332.13
111891.96
110447.00
108997.21
107542.60
106083.13
104618.80
103149.59
101675.48
100196.46
98712.50
97223.60
95729.74
94230.90
92727.06
91218.21
89704.33
88185.40
86661.41
85132.34
83598.18
82058.90
80514.49
78964.93
77410.20
75850.30
74285.19
72714.87
71139.31
69558.50
67972.42
66381.05
64784.38
63182.39
61575.05
59962.36
58344.30
56720.84
55091.97
53457.66
51817.92
50172.70
48522.00
46865.80
45204.08
43536.82
41864.00
40185.61
38501.62
36812.02
35116.78
33415.90
31709.34
29997.10
28279.15
26555.47
24826.05
23090.86
21349.89
19603.11
17850.52
16092.08
14327.78
12557.60
10781.51
8999.51
7211.57
5417.67
3617.78
1811.90

602.58
598.53
594.46
590.38
586.29
582.19
578.07
573.94
569.79
565.63
561.45
557.27
553.06
548.85
544.62
540.37
536.11
531.84
527.55
523.25
518.94
514.61
510.26
505.90
501.53
497.14
492.74
488.32
483.89
479.44
474.98
470.51
466.01
461.51
456.99
452.45
447.90
443.33
438.75
434.15
429.54
424.91
420.27
415.61
410.93
406.24
401.54
396.82
392.08
387.33
382.56
377.77
372.97
368.16
363.32
358.48
353.61
348.73
343.83
338.92
333.99
329.04
324.08
319.10
314.10
309.09
304.06
299.01
293.95
288.87
283.77
278.66
273.53
268.38
263.22
258.03
252.83
247.62
242.38
237.13
231.86
226.57
221.27
215.95
210.61
205.25
199.87
194.48
189.07
183.64
178.19
172.73
167.24
161.74
156.22
150.68
145.12
139.55
133.95
128.34
122.71
117.06
111.39
105.70
99.99
94.26
88.52
82.75
76.97
71.17
65.34
59.50
53.64
47.76
41.86
35.94
30.00
24.04
18.06
12.06
6.04

1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94
1817.94

179558.35
178338.94
177115.46
175887.90
174656.25
173420.50
172180.63
170936.62
169688.47
168436.16
167179.67
165918.99
164654.12
163385.02
162111.70
160834.13
159552.30
158266.20
156975.82
155681.13
154382.12
153078.79
151771.11
150459.07
149142.66
147821.86
146496.66
145167.04
143832.99
142494.50
141151.54
139804.10
138452.17
137095.74
135734.78
134369.29
132999.25
131624.64
130245.45
128861.66
127473.26
126080.23
124682.55
123280.22
121873.21
120461.52
119045.11
117623.99
116198.13
114767.51
113332.13
111891.96
110447.00
108997.21
107542.60
106083.13
104618.80
103149.59
101675.48
100196.46
98712.50
97223.60
95729.74
94230.90
92727.06
91218.21
89704.33
88185.40
86661.41
85132.34
83598.18
82058.90
80514.49
78964.93
77410.20
75850.30
74285.19
72714.87
71139.31
69558.50
67972.42
66381.05
64784.38
63182.39
61575.05
59962.36
58344.30
56720.84
55091.97
53457.66
51817.92
50172.70
48522.00
46865.80
45204.08
43536.82
41864.00
40185.61
38501.62
36812.02
35116.78
33415.90
31709.34
29997.10
28279.15
26555.47
24826.05
23090.86
21349.89
19603.11
17850.52
16092.08
14327.78
12557.60
10781.51
8999.51
7211.57
5417.67
3617.78
1811.90
0.00

At installment 168 = 14th

year, the OSB = 116198.13

Payment no 240(20 yrs) is

the last. No outstanding
balance

Table 2
No
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78

Paying OSB using original monthly installment

New Interest
0.5 % per month
Interest
Principal
Payment Remainder
580.99
116198.13
1817.94 114961.18
574.81
114961.18
1817.94 113718.04
568.59
113718.04
1817.94 112468.69
562.34
112468.69
1817.94 111213.09
556.07
111213.09
1817.94 109951.22
549.76
109951.22
1817.94 108683.03
543.42
108683.03
1817.94 107408.51
537.04
107408.51
1817.94 106127.61
530.64
106127.61
1817.94 104840.31
524.20
104840.31
1817.94 103546.57
517.73
103546.57
1817.94 102246.36
511.23
102246.36
1817.94 100939.65
504.70
100939.65
1817.94
99626.41
498.13
99626.41
1817.94
98306.60
491.53
98306.60
1817.94
96980.19
484.90
96980.19
1817.94
95647.15
478.24
95647.15
1817.94
94307.45
471.54
94307.45
1817.94
92961.04
464.81
92961.04
1817.94
91607.91
458.04
91607.91
1817.94
90248.00
451.24
90248.00
1817.94
88881.30
444.41
88881.30
1817.94
87507.77
437.54
87507.77
1817.94
86127.37
430.64
86127.37
1817.94
84740.06
423.70
84740.06
1817.94
83345.82
416.73
83345.82
1817.94
81944.61
409.72
81944.61
1817.94
80536.39
402.68
80536.39
1817.94
79121.13
395.61
79121.13
1817.94
77698.80
388.49
77698.80
1817.94
76269.35
381.35
76269.35
1817.94
74832.76
374.16
74832.76
1817.94
73388.98
366.94
73388.98
1817.94
71937.98
359.69
71937.98
1817.94
70479.73
352.40
70479.73
1817.94
69014.19
345.07
69014.19
1817.94
67541.32
337.71
67541.32
1817.94
66061.09
330.31
66061.09
1817.94
64573.45
322.87
64573.45
1817.94
63078.38
315.39
63078.38
1817.94
61575.83
307.88
61575.83
1817.94
60065.76
300.33
60065.76
1817.94
58548.15
292.74
58548.15
1817.94
57022.95
285.11
57022.95
1817.94
55490.13
277.45
55490.13
1817.94
53949.64
269.75
53949.64
1817.94
52401.44
262.01
52401.44
1817.94
50845.51
254.23
50845.51
1817.94
49281.80
246.41
49281.80
1817.94
47710.26
238.55
47710.26
1817.94
46130.87
230.65
46130.87
1817.94
44543.59
222.72
44543.59
1817.94
42948.36
214.74
42948.36
1817.94
41345.17
206.73
41345.17
1817.94
39733.95
198.67
39733.95
1817.94
38114.68
190.57
38114.68
1817.94
36487.31
182.44
36487.31
1817.94
34851.81
174.26
34851.81
1817.94
33208.12
166.04
33208.12
1817.94
31556.22
157.78
31556.22
1817.94
29896.06
149.48
29896.06
1817.94
28227.60
141.14
28227.60
1817.94
26550.80
132.75
26550.80
1817.94
24865.61
124.33
24865.61
1817.94
23172.00
115.86
23172.00
1817.94
21469.92
107.35
21469.92
1817.94
19759.33
98.80
19759.33
1817.94
18040.18
90.20
18040.18
1817.94
16312.44
81.56
16312.44
1817.94
14576.07
72.88
14576.07
1817.94
12831.00
64.16
12831.00
1817.94
11077.22
55.39
11077.22
1817.94
9314.66
46.57
9314.66
1817.94
7543.30
37.72
7543.30
1817.94
5763.07
28.82
5763.07
1817.94
3973.95
19.87
3973.95
1817.94
2175.88
10.88
2175.88
1817.94
368.81
1.84
368.81
370.66
0.00

Using initial installment of 1817.94, have to pay

another 77.2 payment, instead of original 72
(=6years). Notice that the last payment is only
370.66 (not full 1817.94). 370.66/1817.94 = 0.2

Table 3

No
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
0
0
0
0
0
0

Paying OSB using NEW monthly installment

New Interest
0.5 % per month
Interest
Principal
Payment Remainder
580.99
116198.13
1925.74 114853.38
574.27
114853.38
1925.74 113501.91
567.51
113501.91
1925.74 112143.68
560.72
112143.68
1925.74 110778.66
553.89
110778.66
1925.74 109406.81
547.03
109406.81
1925.74 108028.11
540.14
108028.11
1925.74 106642.51
533.21
106642.51
1925.74 105249.99
526.25
105249.99
1925.74 103850.50
519.25
103850.50
1925.74 102444.01
512.22
102444.01
1925.74 101030.49
505.15
101030.49
1925.74
99609.91
498.05
99609.91
1925.74
98182.22
490.91
98182.22
1925.74
96747.39
483.74
96747.39
1925.74
95305.39
476.53
95305.39
1925.74
93856.18
469.28
93856.18
1925.74
92399.72
462.00
92399.72
1925.74
90935.98
454.68
90935.98
1925.74
89464.92
447.32
89464.92
1925.74
87986.51
439.93
87986.51
1925.74
86500.70
432.50
86500.70
1925.74
85007.47
425.04
85007.47
1925.74
83506.76
417.53
83506.76
1925.74
81998.56
409.99
81998.56
1925.74
80482.81
402.41
80482.81
1925.74
78959.49
394.80
78959.49
1925.74
77428.55
387.14
77428.55
1925.74
75889.95
379.45
75889.95
1925.74
74343.66
371.72
74343.66
1925.74
72789.64
363.95
72789.64
1925.74
71227.85
356.14
71227.85
1925.74
69658.25
348.29
69658.25
1925.74
68080.81
340.40
68080.81
1925.74
66495.47
332.48
66495.47
1925.74
64902.21
324.51
64902.21
1925.74
63300.98
316.50
63300.98
1925.74
61691.75
308.46
61691.75
1925.74
60074.47
300.37
60074.47
1925.74
58449.10
292.25
58449.10
1925.74
56815.61
284.08
56815.61
1925.74
55173.95
275.87
55173.95
1925.74
53524.08
267.62
53524.08
1925.74
51865.96
259.33
51865.96
1925.74
50199.55
251.00
50199.55
1925.74
48524.81
242.62
48524.81
1925.74
46841.70
234.21
46841.70
1925.74
45150.17
225.75
45150.17
1925.74
43450.18
217.25
43450.18
1925.74
41741.69
208.71
41741.69
1925.74
40024.66
200.12
40024.66
1925.74
38299.05
191.50
38299.05
1925.74
36564.81
182.82
36564.81
1925.74
34821.89
174.11
34821.89
1925.74
33070.26
165.35
33070.26
1925.74
31309.87
156.55
31309.87
1925.74
29540.68
147.70
29540.68
1925.74
27762.65
138.81
27762.65
1925.74
25975.72
129.88
25975.72
1925.74
24179.86
120.90
24179.86
1925.74
22375.03
111.88
22375.03
1925.74
20561.16
102.81
20561.16
1925.74
18738.23
93.69
18738.23
1925.74
16906.18
84.53
16906.18
1925.74
15064.97
75.32
15064.97
1925.74
13214.56
66.07
13214.56
1925.74
11354.89
56.77
11354.89
1925.74
9485.93
47.43
9485.93
1925.74
7607.62
38.04
7607.62
1925.74
5719.92
28.60
5719.92
1925.74
3822.78
19.11
3822.78
1925.74
1916.16
9.58
1916.16
1925.74
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00

Using new installment of 1925.74, the original

number of payments of 72 (=6 years) is
maintained.

Table 4

No
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20

Original Loan Yearly Installment

Original Interest
4 % per annum
Principal
Interest
Payment
Remainder
300000.00
12000.00
22074.53
289925.47
289925.47
11597.02
22074.53
279447.97
279447.97
11177.92
22074.53
268551.36
268551.36
10742.05
22074.53
257218.89
257218.89
10288.76
22074.53
245433.12
245433.12
9817.32
22074.53
233175.92
233175.92
9327.04
22074.53
220428.43
220428.43
8817.14
22074.53
207171.05
207171.05
8286.84
22074.53
193383.36
193383.36
7735.33
22074.53
179044.17
179044.17
7161.77
22074.53
164131.41
164131.41
6565.26
22074.53
148622.15
148622.15
5944.89
22074.53
132492.51
132492.51
5299.70
22074.53
115717.68
115717.68
4628.71
22074.53
98271.86
98271.86
3930.87
22074.53
80128.21
80128.21
3205.13
22074.53
61258.82
61258.82
2450.35
22074.53
41634.64
41634.64
1665.39
22074.53
21225.50
21225.50
849.02
22074.53
0.00

This is a Yearly Rest. Installment of 22074.53 is

paid Yearly not monthly. On Year 14, the
Outstanding Balance = 115717.68.
And the last payment is on Year 20.