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Answer in Financial Math for Kikau #273011

Author:
March 15th, 2023

A debt of 40 000 is to amortized with 8 000 being paid at the end of each quarter .The interest rate is 16% compounded quarterly.Construct an amortization schedule

“PV = PMT frac{1-(1+i)^{-n}}{i}”

number of payments:

“n=-frac{ln(1-PVi/PMT)}{ln(1+i)}=-frac{ln(1-40000cdot0.04/8000)}{ln(1+0.16/4)}=5.69approx6”

Interest Paid = i * Remaining Principal

Principal Repaid = Payment Amount – Interest Paid

Remaining Principal = Remaining Principal (from the previous row) – Principal Paid

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