Lecture No13 c4.ppt - Contemporary Engineering Economics 4...

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Contemporary Engineering Economics, 4 th edition, © 2007 Debt Management Lecture No.13 Chapter 4 Contemporary Engineering Economics Copyright © 2006
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Contemporary Engineering Economics, 4 th edition, © 2007 Debt Management
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Contemporary Engineering Economics, 4 th edition, © 2007 Example 4.12 Amortized Loan Given : P = $5,000, i = 12% APR, N = 24 months Find : A A = $5,000(A/P, 1%, 24) = $235.37
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Contemporary Engineering Economics, 4 th edition, © 2007 Loan Repayment Schedule
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Contemporary Engineering Economics, 4 th edition, © 2007 Calculating the Remaining Loan Balance after Making the n th Payment
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Contemporary Engineering Economics, 4 th edition, © 2007 Example 4.13 – Computing the Outstanding Loan Balance after making the 6 th payment
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Contemporary Engineering Economics, 4 th edition, © 2007 Practice Problem Consider the 7 th payment ($235.37) (a) How much is the interest payment? (b) What is the amount of principal payment?
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Contemporary Engineering Economics, 4 th edition, © 2007 Solution $5,000 A = $235.37 0 1 2 3 4 5 6 7 22 23 24 i = 1% per month $5,000( / ,1%,24) $235.37 A A P Interest payment = ?
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