08-18-2006, 07:42 PM
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
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
