interest compounded monthly. Draw up the amortization table for this loan. Example 37:A loan is being repaid with 20 annual payments of €400 each. At the time of the fourth payment, the borrower wishes to pay an extra €200 and then repay the loan over 10 years with a revised annual payment. If the effective annual interest rate is 7%, find the amount of the revised annual payment. Example 38:A €100,000 loan is to be repaid by 30 equal payments at the end of each year. The monthly effective rate is 0.5%. After payment of the 5th repayment, the borrower pays an extra €4500. Calculate the amount of the revised monthly payment.Example 39:Mary borrows €175,000 from a bank. The loan is being repaid with 360 monthly payments. The effective rate of interest is 5%. With the 120th payment, Mary pays an extra €6500. Calculate the amount of the revised monthly payment.Example 40:A loan is being amortized using an interest rate of 8% convertible quarterly with level payments at the end of each quarter for the next 10 years. After the 10th payment, the borrower wants to reduce the quarterly payment. Obtain the expression that allows you to calculate the extra payment the borrower has to make in order to reduce the quarterly payment by 10%. Example 42:Mary borrows €200,000 from a bank. The loan is to be repaid with 240 monthly payments. The monthly effective rate of interest is 1.5%. Calculate the extra payment Mary has to make in 10 years if she wants to cancel the loan in 15 years paying her current payment. Example 44:A housing loan of €400,000 was to be repaid over 20 years by monthly installments of an annuity-immediate at the nominal rate of 5% per year. After the 24th payment was made, the bank increased the interest rate to 5.5%. If the lender was required to repay the loan within the same period, how much would the increase in the monthly installments be? If the installment remained unchanged, how much longer would it take to pay back the loan?
Example 46:A housing loan is to be repaid with a 15‐year monthly annuity‐immediate of €2000 at a nominal rate of 6% per year. After 20 payments, the borrower requests for the installments to be stopped for 12 months. Calculate the revised installment when the borrower starts to pay the loan back again, so that the loan period remains unchanged. Amortizing loans with a waiting period, d Example 49:A loan of principal €50,000 is being repaid with level repayments at the end of each year for 15 years. The payments begin exactly two years after the loan is made. If the annual effective interest rate is 3%, find the level repayments Example 50:A loan of principal €50,000 is being repaid with fifteen level repayments at the end of each year. During the first five years the borrower only pays interest. If the annual
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