Question: Loan amount 500000, Interest 16%, and 5 years monthly compounding.

Now find
(1) Monthly Installment. (2) Amortization Section.

Answer:1
Loan, PV = $500000
Interest, i =16%
=.16/12
=0.01333
Numbers of period, n= 5 Years (monthly compounding)
= 5*12= 60
Monthly Installment, C= ?

PV = C/i *{1-1/ (1+i)^n}

=> $500000=C/0.01333*(1-1/1.01333^60)
=> 6666.6666= C*.45179
=> C= 6666.6666/.45179
=> C = $12159.02
Monthly Installment = $12159.02.

Answer:2
Amortization Section:
No. of years
1
1
1
1
1
1
1
1
1
1
1

No of
installment
1
2
3
4
5
6
7
8
9
10
11

Beginning
Principal
$500,000
$494,507.64
$488,942.04
$483,302.24
$477,587.24
$471,796.05
$465,927.63
$459,980.97
$453,955.02
$447,848.73
$441,661.02

Loan Payment
$12,159.03
$12,159.03
$12,159.03
$12,159.03
$12,159.03
$12,159.03
$12,159.03
$12,159.03
$12,159.03
$12,159.03
$12,159.03

Interest
$6,667
6593.43517
$6,519.23
$6,444.03
$6,367.83
$6,290.61
$6,212.37
$6,133.08
$6,052.73
$5,971.32
$5,888.81

Principal
$5,492.36
$5,565.59
$5,639.80
$5,715.00
$5,791.20
$5,868.41
$5,946.66
$6,025.95
$6,106.29
$6,187.71
$6,270.22

End of year
Principal
$494,507.64
$488,942.04
$483,302.24
$477,587.24
$471,796.05
$465,927.63
$459,980.97
$453,955.02
$447,848.73
$441,661.02
$435,390.80

1
2
2
2
2
2
2
2
2
2
2
2
2
3
3
3
3
3
3
3
3
3
3
3
3
4
4
4
4
4
4
4
4
4
4
4
4
5
5
5
5
5
5
5
5
5
5
5
5

12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60

$435,390.80
$429,036.98
$422,598.45
$416,074.06
$409,462.69
$402,763.16
$395,974.31
$389,094.94
$382,123.84
$375,059.80
$367,901.57
$360,647.89
$353,297.50
$345,849.11
$338,301.40
$330,653.06
$322,902.74
$315,049.08
$307,090.70
$299,026.22
$290,854.21
$282,573.23
$274,181.85
$265,678.58
$257,061.93
$248,330.39
$239,482.44
$230,516.51
$221,431.03
$212,224.42
$202,895.05
$193,441.29
$183,861.48
$174,153.93
$164,316.96
$154,348.82
$144,247.78
$134,012.05
$123,639.85
$113,129.35
$102,478.72
$91,686.07
$80,749.52
$69,667.16
$58,437.02
$47,057.15
$35,525.56
$23,840.20
$11,999.04

$12,159.03
$12,159.03
$12,159.03
$12,159.03
$12,159.03
$12,159.03
$12,159.03
$12,159.03
$12,159.03
$12,159.03
$12,159.03
$12,159.03
$12,159.03
$12,159.03
$12,159.03
$12,159.03
$12,159.03
$12,159.03
$12,159.03
$12,159.03
$12,159.03
$12,159.03
$12,159.03
$12,159.03
$12,159.03
$12,159.03
$12,159.03
$12,159.03
$12,159.03
$12,159.03
$12,159.03
$12,159.03
$12,159.03
$12,159.03
$12,159.03
$12,159.03
$12,159.03
$12,159.03
$12,159.03
$12,159.03
$12,159.03
$12,159.03
$12,159.03
$12,159.03
$12,159.03
$12,159.03
$12,159.03
$12,159.03
$12,159.03

$5,805.21
$5,720.49
$5,634.65
$5,547.65
$5,459.50
$5,370.18
$5,279.66
$5,187.93
$5,094.98
$5,000.80
$4,905.35
$4,808.64
$4,710.63
$4,611.32
$4,510.69
$4,408.71
$4,305.37
$4,200.65
$4,094.54
$3,987.02
$3,878.06
$3,767.64
$3,655.76
$3,542.38
$3,427.49
$3,311.07
$3,193.10
$3,073.55
$2,952.41
$2,829.66
$2,705.27
$2,579.22
$2,451.49
$2,322.05
$2,190.89
$2,057.98
$1,923.30
$1,786.83
$1,648.53
$1,508.39
$1,366.38
$1,222.48
$1,076.66
$928.90
$779.16
$627.43
$473.67
$317.87
$159.99

$6,353.82
$6,438.54
$6,524.38
$6,611.37
$6,699.53
$6,788.85
$6,879.37
$6,971.10
$7,064.04
$7,158.23
$7,253.67
$7,350.39
$7,448.40
$7,547.71
$7,648.34
$7,750.32
$7,853.66
$7,958.37
$8,064.49
$8,172.01
$8,280.97
$8,391.39
$8,503.27
$8,616.65
$8,731.54
$8,847.96
$8,965.93
$9,085.48
$9,206.61
$9,329.37
$9,453.76
$9,579.81
$9,707.54
$9,836.98
$9,968.14
$10,101.04
$10,235.72
$10,372.20
$10,510.50
$10,650.64
$10,792.65
$10,936.55
$11,082.37
$11,230.13
$11,379.87
$11,531.60
$11,685.35
$11,841.16
$11,999.04

$429,036.98
$422,598.45
$416,074.06
$409,462.69
$402,763.16
$395,974.31
$389,094.94
$382,123.84
$375,059.80
$367,901.57
$360,647.89
$353,297.50
$345,849.11
$338,301.40
$330,653.06
$322,902.74
$315,049.08
$307,090.70
$299,026.22
$290,854.21
$282,573.23
$274,181.85
$265,678.58
$257,061.93
$248,330.39
$239,482.44
$230,516.51
$221,431.03
$212,224.42
$202,895.05
$193,441.29
$183,861.48
$174,153.93
$164,316.96
$154,348.82
$144,247.78
$134,012.05
$123,639.85
$113,129.35
$102,478.72
$91,686.07
$80,749.52
$69,667.16
$58,437.02
$47,057.15
$35,525.56
$23,840.20
$11,999.04
$0.00