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Opening Instalment Loan Instalment Interest Principal Closing Loan Date Balance Paid Component Reduction Balance $ S $ S S 31/12/X1 250,000 34,496...
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Question

Scotch Ltd borrows $250,000 from the Northpac Bank on the 1st July

20X1. The loan is secured by a mortgage over real estate. The term of the loan is four years with fixed compound interest of 4.5% per annum paid in arrears. The loan is repaid in 6 monthly instalments of interest and principal with the first instalment occurring on the 31st December 20X1. These instalments are each $34,496 (rounded to the nearest dollar).
Required:
a) A partially complete loan repayment schedule for the entire loan is provided below. Complete the schedule by inserting the correct numbers in the seven (7) vacant cells. Round numbers to the nearest whole dollar.

acc.png
Opening
Instalment
Loan
Instalment
Interest
Principal
Closing Loan
Date
Balance
Paid
Component
Reduction
Balance
$
S
$
S
S
31/12/X1
250,000
34,496
5,625
28,871
221,129
30/6/X2
221,129
34,496
29,521
191,608
31/12/X2
191,608
34,496
4,311
I
161,423
+
30/6/X3
161,423
34,496
I
130,559
31/12/X3
130,559
34,496
2,938
31,558
99,001
30/6/X4
99,001
34,496
31/12/X4
66,733
34,496
1,501
32,995
33,738
30/6/X5
33,738
34,497*
759
33,738
* = last payment amount reflect + roundings.

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Subject: Accounting, Business

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