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+--- Thread: Amortization (/showthread.php?tid=3696)
Amortization - Daee - 08-12-2006
Please advise me as to how do we get monthly payment if,
we have 12 months to repay Rs.1000 at 7.5% i am unable to calculate the monthly payment?
Thanks
- Daee - 08-12-2006
Thanks brother, but which formula to be used?
- Daee - 08-15-2006
Brother Thank you for your help.
However, can you do me a favour and calculate the monthly instalment for say, amount borrwed $1000 at 7% interest rate for 12 months cause the answer i get is different from what is given in the solution.
Regards
- accountant1 - 08-15-2006
sorry before i was useing annuity but it was amotiziation
here is correct answer
Principal $1,000.00
# of Payments 12
Interest Rate 7.00%
Payment $86.52
- Asifkhan - 08-17-2006
Brother, thanks for your help but my problem is still there because i don't understand how you arrived at 86.52 ? What is the formula ? and how to calculate it?
Regards,
- Dhamp - 08-18-2006
Formula is in two parts
A)Calculation of Principal Payment For Ist Instalment==((-1000)*7%/12)/(1-(1+(7%/12))^12)=80.69
B)Calculation of interest for ist instalment=1000*7%/12=5.8
Total Instalment amount =A+B=80.69+5.83=86.53
I assumend 7% interest rate perannum and monthly payments
for 2nd and onwards instalments same formula,except annuity will be calculated on the remaining principal balance and the remaining payment period thatis is for 2nd Instalment Prinicipal=1000-80.69=919.31 and number of payments=11
I hope this suffices
You are welcome if there is any query
- Daee - 08-18-2006
Thanks Brother,
I am using the same formula and i get,
1-)(-Principal)*interest / Number of Ist (-1000)*0.07/12 = -5.833
2-){1-(1+(Int/number of Ins)} = {1-(1+(0.07/12)} = -0.0058
3-) (1/2)/12 = (-5.833/-0.0058)/12 = 83.333 yours is 80.69 ????
Please advise
Thanks for your help and assistance.
- Daee - 09-06-2006
<blockquote id="quote"><font size="1" face="Verdana, Tahoma, Arial" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by Daee</i>
<br />Thanks Brother,
I am using the same formula and i get,
1-)(-Principal)*interest / Number of Ist (-1000)*0.07/12 = -5.833
2-){1-(1+(Int/number of Ins)} = {1-(1+(0.07/12)} = -0.0058
3-) (1/2)/12 = (-5.833/-0.0058)/12 = 83.333 yours is 80.69 ????
Please advise
Thanks for your help and assistance.
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
Waiting for your reply Dhamp.
Rgds
- derivativetrader - 09-07-2006
<blockquote id="quote"><font size="1" face="Verdana, Tahoma, Arial" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by Daee</i>
<br />Please advise me as to how do we get monthly payment if,
we have 12 months to repay Rs.1000 at 7.5% i am unable to calculate the monthly payment?
Thanks
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
Isn't this the right answer
Loan Amount = 1,000
Rate of Interest = 7.5%
Total Amount payable over 12 years = 1,075 (=1.075*1000)
Monthly payment = 89.58 (=1075/12)
- Daee - 09-07-2006
No,
The correct answer is 80.69 but how do we get this it remains a mystery.
- Daee - 09-16-2006
<blockquote id="quote"><font size="1" face="Verdana, Tahoma, Arial" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by Daee</i>
<br />No,
The correct answer is 80.69 but how do we get this it remains a mystery.
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
Hey Dhamp where are you?????????