Question

You borrow 50,000€ from a bank. The bank offers the following conditions: rate of interest: 3%; n:10years. After having paid the first two payments, you decide to pay 25,000€ in advance, and to reduce the amount of the remaining payments. Find the payments

Answer 1

Pricipal amount	50000
annual Interest rate	3%
period	10 years
Equilated monthly installments (EMI)	483
(Assuming that payments are made on monthly basis)
(P X R/12) X [(1+R/12) ^N] / [(1+R/12) ^N-1]
P= 50000, R=3%, N=120 months
First payment made	483
Interest paid	125
Principal Paid	358
Remaining principal	49642
Second payment made	483
Interest paid	124.105
Pricipal Paid	358.895
Remaining principal after 2nd payment	49283.11
Lump sum payment made	25000
Remaining principal	24283.11
remaining tenure 120-2=118 months
EMI for Remaining perid	237