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Your company has just taken out a one year installment loan for $82,500 at a nominal...

Your company has just taken out a one year installment loan for $82,500 at a nominal rate of 12% but with equal end month payments. what percentage of the second monthly payment will go towards the repayment principle?

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Answer #1

EMI = Loan / PVAF (r%, n)

= $ 82,500 / PVAF (1%, 12)

= $ 82,500 / 11.2551

= $ 7330.03

Amorization Schedule.:

2nd instalment Principal repay = 6570.08

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