online class exercise 2 MA.docx - (265051 Online Class 2 exercise 1.En Johan plans to make a RM20,000 personal loan with UMW Bank The bank will charge

# online class exercise 2 MA.docx - (265051 Online Class 2...

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(265051) Online Class 2 exercise 1.En. Johan plans to make a RM20,000 personal loan with UMW Bank. The bank will charge him 4% above the Base Lending Rate, which currently is fixed at 6%. He wishes to settle the loan installment in 5 years. a. Determine the annual installment that En. Johan has to pay for the loan. PV = PMT ( 1 −( 1 1 + r n ) r ) 20000 = PMT ( 1 −( 1 1 + 0.1 5 ) 0.1 ) PMT = RM 5,275.95 b. Construct an amortization schedule for the loan.

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Unformatted text preview: Year A B C = A (k) D = B - C E = A - D Beginning Balance ( RM ) Annual Payment ( RM ) Interest ( RM ) Principal ( RM ) Ending Balance ( RM ) 1 20,000 5,275.95 2,000 3,275.95 16,724.05 2 16,724.05 5,275.95 1,672.41 3,603.54 13,120.51 3 13,120.51 5,275.95 1,312.05 3,963.90 9,156.61 4 9,156.61 5,275.95 915.66 4,360.29 4,796.32 5 4,796.32 5,275.92 479.63 4,796.32...
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• Spring '16
• Allan Mesina

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