a student will pay $200 a month on her student loan. The loan is for 10 years an
ID: 2648944 • Letter: A
Question
a student will pay $200 a month on her student loan. The loan is for 10 years and has an annual interest rate of 5.8%. How much did she borrow? after 5 years, how much will she still owe on the loan? How much will she pay in interest with the 81st payment? a student will pay $200 a month on her student loan. The loan is for 10 years and has an annual interest rate of 5.8%. How much did she borrow? after 5 years, how much will she still owe on the loan? How much will she pay in interest with the 81st payment?Explanation / Answer
Formula for calculation of EMI = P*R*(1+R)n/(1+R)n-1
Here P =Principal amount
R= rate of interest =5.8% per annum.
Monthly interest =5.8%/12 =0.483333%
n=10years* 12 monthly instalments = 120
Substituting the value in the above said formula.
$200 = P * 0.483333%*(1+0.48333%)120/(1+0.483333%)120-1
$200=P*0.011001881
P=$200/0.011001881
P=$18,178.71
Loan schedule for the above principal amount for 120 months @5.8% is as below:
Principaloutstanding at the end of 5 years is nothing but the principal outstanding at the end of 60 th month of repayment and it is equal to $10,395.04
Interest paid in the 81st instalment =$35.08.
Month EMI Principal Interest Principal o/s 0 $18,178.71 1 $200.00 $112.14 $87.86 $18,066.57 2 $200.00 $112.68 $87.32 $17,953.90 3 $200.00 $113.22 $86.78 $17,840.67 4 $200.00 $113.77 $86.23 $17,726.90 5 $200.00 $114.32 $85.68 $17,612.58 6 $200.00 $114.87 $85.13 $17,497.71 7 $200.00 $115.43 $84.57 $17,382.28 8 $200.00 $115.99 $84.01 $17,266.30 9 $200.00 $116.55 $83.45 $17,149.75 10 $200.00 $117.11 $82.89 $17,032.64 11 $200.00 $117.68 $82.32 $16,914.97 12 $200.00 $118.24 $81.76 $16,796.72 13 $200.00 $118.82 $81.18 $16,677.90 14 $200.00 $119.39 $80.61 $16,558.51 15 $200.00 $119.97 $80.03 $16,438.55 16 $200.00 $120.55 $79.45 $16,318.00 17 $200.00 $121.13 $78.87 $16,196.87 18 $200.00 $121.72 $78.28 $16,075.16 19 $200.00 $122.30 $77.70 $15,952.85 20 $200.00 $122.89 $77.11 $15,829.96 21 $200.00 $123.49 $76.51 $15,706.47 22 $200.00 $124.09 $75.91 $15,582.38 23 $200.00 $124.69 $75.31 $15,457.70 24 $200.00 $125.29 $74.71 $15,332.41 25 $200.00 $125.89 $74.11 $15,206.52 26 $200.00 $126.50 $73.50 $15,080.02 27 $200.00 $127.11 $72.89 $14,952.90 28 $200.00 $127.73 $72.27 $14,825.17 29 $200.00 $128.34 $71.66 $14,696.83 30 $200.00 $128.97 $71.03 $14,567.86 31 $200.00 $129.59 $70.41 $14,438.28 32 $200.00 $130.22 $69.78 $14,308.06 33 $200.00 $130.84 $69.16 $14,177.22 34 $200.00 $131.48 $68.52 $14,045.74 35 $200.00 $132.11 $67.89 $13,913.63 36 $200.00 $132.75 $67.25 $13,780.88 37 $200.00 $133.39 $66.61 $13,647.48 38 $200.00 $134.04 $65.96 $13,513.45 39 $200.00 $134.69 $65.31 $13,378.76 40 $200.00 $135.34 $64.66 $13,243.43 41 $200.00 $135.99 $64.01 $13,107.44 42 $200.00 $136.65 $63.35 $12,970.79 43 $200.00 $137.31 $62.69 $12,833.48 44 $200.00 $137.97 $62.03 $12,695.51 45 $200.00 $138.64 $61.36 $12,556.87 46 $200.00 $139.31 $60.69 $12,417.56 47 $200.00 $139.98 $60.02 $12,277.58 48 $200.00 $140.66 $59.34 $12,136.92 49 $200.00 $141.34 $58.66 $11,995.58 50 $200.00 $142.02 $57.98 $11,853.56 51 $200.00 $142.71 $57.29 $11,710.85 52 $200.00 $143.40 $56.60 $11,567.46 53 $200.00 $144.09 $55.91 $11,423.37 54 $200.00 $144.79 $55.21 $11,278.58 55 $200.00 $145.49 $54.51 $11,133.09 56 $200.00 $146.19 $53.81 $10,986.90 57 $200.00 $146.90 $53.10 $10,840.01 58 $200.00 $147.61 $52.39 $10,692.40 59 $200.00 $148.32 $51.68 $10,544.08 60 $200.00 $149.04 $50.96 $10,395.04 61 $200.00 $149.76 $50.24 $10,245.29 62 $200.00 $150.48 $49.52 $10,094.80 63 $200.00 $151.21 $48.79 $9,943.60 64 $200.00 $151.94 $48.06 $9,791.66 65 $200.00 $152.67 $47.33 $9,638.98 66 $200.00 $153.41 $46.59 $9,485.57 67 $200.00 $154.15 $45.85 $9,331.42 68 $200.00 $154.90 $45.10 $9,176.52 69 $200.00 $155.65 $44.35 $9,020.87 70 $200.00 $156.40 $43.60 $8,864.47 71 $200.00 $157.16 $42.84 $8,707.32 72 $200.00 $157.91 $42.09 $8,549.40 73 $200.00 $158.68 $41.32 $8,390.73 74 $200.00 $159.44 $40.56 $8,231.28 75 $200.00 $160.22 $39.78 $8,071.07 76 $200.00 $160.99 $39.01 $7,910.08 77 $200.00 $161.77 $38.23 $7,748.31 78 $200.00 $162.55 $37.45 $7,585.76 79 $200.00 $163.34 $36.66 $7,422.42 80 $200.00 $164.12 $35.88 $7,258.30 81 $200.00 $164.92 $35.08 $7,093.38 82 $200.00 $165.72 $34.28 $6,927.66 83 $200.00 $166.52 $33.48 $6,761.15 84 $200.00 $167.32 $32.68 $6,593.83 85 $200.00 $168.13 $31.87 $6,425.70 86 $200.00 $168.94 $31.06 $6,256.75 87 $200.00 $169.76 $30.24 $6,087.00 88 $200.00 $170.58 $29.42 $5,916.42 89 $200.00 $171.40 $28.60 $5,745.01 90 $200.00 $172.23 $27.77 $5,572.78 91 $200.00 $173.06 $26.94 $5,399.71 92 $200.00 $173.90 $26.10 $5,225.81 93 $200.00 $174.74 $25.26 $5,051.07 94 $200.00 $175.59 $24.41 $4,875.49 95 $200.00 $176.44 $23.56 $4,699.05 96 $200.00 $177.29 $22.71 $4,521.76 97 $200.00 $178.14 $21.86 $4,343.62 98 $200.00 $179.01 $20.99 $4,164.61 99 $200.00 $179.87 $20.13 $3,984.74 100 $200.00 $180.74 $19.26 $3,804.00 101 $200.00 $181.61 $18.39 $3,622.39 102 $200.00 $182.49 $17.51 $3,439.89 103 $200.00 $183.37 $16.63 $3,256.52 104 $200.00 $184.26 $15.74 $3,072.26 105 $200.00 $185.15 $14.85 $2,887.11 106 $200.00 $186.05 $13.95 $2,701.06 107 $200.00 $186.94 $13.06 $2,514.12 108 $200.00 $187.85 $12.15 $2,326.27 109 $200.00 $188.76 $11.24 $2,137.51 110 $200.00 $189.67 $10.33 $1,947.85 111 $200.00 $190.59 $9.41 $1,757.26 112 $200.00 $191.51 $8.49 $1,565.75 113 $200.00 $192.43 $7.57 $1,373.32 114 $200.00 $193.36 $6.64 $1,179.96 115 $200.00 $194.30 $5.70 $985.66 116 $200.00 $195.24 $4.76 $790.43 117 $200.00 $196.18 $3.82 $594.25 118 $200.00 $197.13 $2.87 $397.12 119 $200.00 $198.08 $1.92 $199.04 120 $200.00 $199.04 $0.96 $0.00Related Questions
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