Exercises for lecture XI “Loan amortization schedule”

1. A loan is being repaid with annual installments. The amount of principal repaid in
the10th installment is 1000$ and the principal repaid in the 12th installment is
1150$. Find the principal repaid in the 15th installment.
2. A loan is being repaid with 60 monthly payments of 1000$. The principal repaid in
the last payment is 990.10$. Find the amount of the loan.
3. A loan is being repaid with level payments at the end of each year for 20 years. The
principal repaid in the 10th payment is 1000$ and the principal repaid in the 15th
payment is 1200$. Calculate the amount of the loan.
4. A loan will be repaid with annual level payments for 4 years with 8% effective
interest. The loan outstanding balances at the end of the second and the third years
respectively are: 1076.82$ and 559.12$. Find the principal repaid in the first
payment.
5. A loan will be repaid with annual level payments with 7% effective interest. The 8th
payment is consists of 789$ interest and 211$ repaid principal. Find the amount of
interest paid in the 18th payment.
6. A 10-year loan of L$ is repaid by the amortization method at an annual effective
interest rate of i with payments of 1000$ at the end of each year. The total amount
of interest repaid during the life of the loan is also equal to L$. Calculate the amount
of interest repaid during the first year of the loan.
7. A loan of 100’000$ is repaid with quarterly installments for 15 years with interest j2
= 11.5%. At the end of the second year the interest changed to j12 = 13% and the
borrower was granted a “Grace Period” for 6 months. After that, the borrower paid
500$ each quarter for one year. Find the value of the new installment, if the duration
and the frequency of payment do not change.
8. A loan of 100’000$ is repaid with quarterly installments for 15 years with interest j4
= 12.5%. At the end of the second year the interest changed to j2 = 13% and the
borrower was granted a “Moratorium Period” for 1 year. After that, the borrower
paid 1000$ each month for one year. Find the value of the new installment, if the
duration is extended for one year (the frequency of payment does not change).
9. A loan 0f 20’000$ with interest j2 = 18% will be repaid with 25 monthly
installments. After having paid 5 installments, the borrower stopped paying.
a) Calculate the outstanding loan balance after the 7th month. If the borrower
starts paying again at this time, calculate the new installment amount
supposing that the duration of loan is extended for 5 months.
b) The borrower is granted a Grace period from month 6 to 10. If he has to pay
1.5% of the outstanding loan as commission, calculate the payment of
interest during the Grace period and the new installment after this period
(no changes in duration).
c) After the 5th month, the borrower is granted a Period of Moratorium for 7
months and has to pay a commission of 1.5% of the outstanding loan balance.
At the end of the Moratorium Period, he makes monthly payments of 500$
for 4 months and then starts paying a new installment. Find the new
installment amount if the duration is extended for 10 months