Exercise 16

Problem 1 Problem 2

Period Balance Payment Interest Paid Payment for Principal

Period Balance Payment Interest Paid Payment for Principal
1 2,000,000.00 75,000.00 60,000.00 15,000.00
1 50,000.00 5,000.00 3,000.00 2,000.00
2 1,985,000.00 75,000.00 59,550.00 15,450.00
2 48,000.00 5,000.00 2,880.00 2,120.00
3 1,969,550.00 75,000.00 59,086.50 15,913.50
3 45,880.00 5,000.00 2,752.80 2,247.20
4 1,953,636.50 75,000.00 58,609.10 16,390.91
4 43,632.80 5,000.00 2,617.97 2,382.03
5 1,937,245.60 75,000.00 58,117.37 16,882.63
5 41,250.77 5,000.00 2,475.05 2,524.95
6 1,920,362.96 75,000.00 57,610.89 17,389.11
6 38,725.81 5,000.00 2,323.55 2,676.45
7 1,902,973.85 75,000.00 57,089.22 17,910.78
7 36,049.36 5,000.00 2,162.96 2,837.04
8 1,885,063.07 75,000.00 56,551.89 18,448.11
8 33,212.32 5,000.00 1,992.74 3,007.26
9 1,866,614.96 75,000.00 55,998.45 19,001.55
9 30,205.06 5,000.00 1,812.30 3,187.70
10 1,847,613.41 75,000.00 55,428.40 19,571.60
10 27,017.37 5,000.00 1,621.04 3,378.96
11 1,828,041.81 75,000.00 54,841.25 20,158.75
11 23,638.41 5,000.00 1,418.30 3,581.70
12 1,807,883.06 75,000.00 54,236.49 20,763.51
12 20,056.71 5,000.00 1,203.40 3,796.60
13 1,787,119.56 75,000.00 53,613.59 21,386.41
13 16,260.12 5,000.00 975.61 4,024.39
14 1,765,733.14 75,000.00 52,971.99 22,028.01
14 12,235.72 5,000.00 734.14 4,265.86
15 1,743,705.14 75,000.00 52,311.15 22,688.85
15 7,969.87 5,000.00 478.19 4,521.81
16 1,721,016.29 75,000.00 51,630.49 23,369.51
16 3,448.06 3,654.94 206.88 0.00
17 1,697,646.78 75,000.00 50,929.40 24,070.60
18 1,673,576.18 75,000.00 50,207.29 24,792.71
19 1,648,783.47 75,000.00 49,463.50 25,536.50
Problem 3
20 1,623,246.97 75,000.00 48,697.41 26,302.59 Period Balance Payment Interest Paid Payment for Principal
21 1,596,944.38 75,000.00 47,908.33 27,091.67 1 2,000,000.00 500,000.00 160,000.00 340,000.00
22 1,569,852.71 75,000.00 47,095.58 27,904.42 2 1,660,000.00 500,000.00 132,800.00 367,200.00
23 1,541,948.30 75,000.00 46,258.45 28,741.55 3 1,292,800.00 500,000.00 103,424.00 396,576.00
24 1,513,206.74 75,000.00 45,396.20 29,603.80 4 896,224.00 500,000.00 71,697.92 428,302.08
25 1,483,602.95 75,000.00 44,508.09 30,491.91 5 467,921.92 500,000.00 37,433.75 462,566.25
26 1,453,111.04 75,000.00 43,593.33 31,406.67 6 5,355.67 5,784.13 428.45 0.00
27 1,421,704.37 75,000.00 42,651.13 32,348.87
28 1,389,355.50 75,000.00 41,680.66 33,319.34
29 1,356,036.16 75,000.00 40,681.08 34,318.92
Problem 4
30 1,321,717.25 75,000.00 39,651.52 35,348.48
Period Balance Payment Interest Paid Payment for Principal
31 1,286,368.76 75,000.00 38,591.06 36,408.94
1 80,000.00 5,000.00 933.33 4,066.67
32 1,249,959.83 75,000.00 37,498.79 37,501.21
2 75,933.33 5,000.00 885.89 4,114.11
33 1,212,458.62 75,000.00 36,373.76 38,626.24
3 71,819.22 5,000.00 837.89 4,162.11
34 1,173,832.38 75,000.00 35,214.97 39,785.03
4 67,657.11 5,000.00 789.33 4,210.67
35 1,134,047.35 75,000.00 34,021.42 40,978.58
5 63,446.45 5,000.00 740.21 4,259.79
36 1,093,068.77 75,000.00 32,792.06 42,207.94
6 59,186.65 5,000.00 690.51 4,309.49
37 1,050,860.84 75,000.00 31,525.83 43,474.17
7 54,877.17 5,000.00 640.23 4,359.77
38 1,007,386.66 75,000.00 30,221.60 44,778.40
8 50,517.40 5,000.00 589.37 4,410.63
39 962,608.26 75,000.00 28,878.25 46,121.75
9 46,106.77 5,000.00 537.91 4,462.09
40 916,486.51 75,000.00 27,494.60 47,505.40
10 41,644.68 5,000.00 485.85 4,514.15
41 868,981.10 75,000.00 26,069.43 48,930.57
11 37,130.54 5,000.00 433.19 4,566.81
42 820,050.54 75,000.00 24,601.52 50,398.48
12 32,563.73 5,000.00 379.91 4,620.09
43 769,652.05 75,000.00 23,089.56 51,910.44
13 27,943.64 5,000.00 326.01 4,673.99
44 717,741.61 75,000.00 21,532.25 53,467.75
14 23,269.64 5,000.00 271.48 4,728.52
45 664,273.86 75,000.00 19,928.22 55,071.78
15 18,541.12 5,000.00 216.31 4,783.69
46 609,202.08 75,000.00 18,276.06 56,723.94
16 13,757.44 5,000.00 160.50 4,839.50
47 552,478.14 75,000.00 16,574.34 58,425.66
17 8,917.94 5,000.00 104.04 4,895.96
48 494,052.49 75,000.00 14,821.57 60,178.43
18 4,021.98 4,068.91 46.92 0.00
49 433,874.06 75,000.00 13,016.22 61,983.78
9,068.91
50 371,890.28 75,000.00 11,156.71 63,843.29
51 308,046.99 75,000.00 9,241.41 65,758.59
52 242,288.40 75,000.00 7,268.65 67,731.35
53 174,557.05 75,000.00 5,236.71 69,763.29
54 104,793.76 75,000.00 3,143.81 71,856.19
55 32,937.58 33,925.70 988.13 0.00
Problem 5 Problem 9

Period Balance Payment Interest Paid Payment for Principal

Period Balance Payment Interest Paid Payment for Principal
1 300,000.00 100,000.00 36,000.00 64,000.00
1 200,000.00 20,000.00 16,000.00 4,000.00
2 236,000.00 125,000.00 28,320.00 96,680.00
2 196,000.00 20,000.00 15,680.00 4,320.00
3 139,320.00 50,000.00 16,718.40 33,281.60
3 191,680.00 20,000.00 15,334.40 4,665.60
4 106,038.40 50,000.00 12,724.61 37,275.39
4 187,014.40 20,000.00 14,961.15 5,038.85
5 68,763.01 50,000.00 8,251.56 41,748.44
5 181,975.55 20,000.00 14,558.04 5,441.96
6 27,014.57 30,256.32 3,241.75 0.00
6 176,533.60 20,000.00 14,122.69 5,877.31
7 170,656.28 20,000.00 13,652.50 6,347.50
Problem 6 8 164,308.79 20,000.00 13,144.70 6,855.30
9 157,453.49 20,000.00 12,596.28 7,403.72
10 150,049.77 20,000.00 12,003.98 7,996.02
Period Balance Payment Interest Paid Payment for Principal 11 142,053.75 20,000.00 11,364.30 8,635.70
1 75,000.00 8,000.00 3,375.00 4,625.00 12 133,418.05 20,000.00 10,673.44 9,326.56
2 70,375.00 8,000.00 3,166.88 4,833.13 13 124,091.49 20,000.00 9,927.32 10,072.68
3 65,541.88 8,000.00 2,949.38 5,050.62 14 114,018.81 20,000.00 9,121.51 10,878.49
4 60,491.26 8,000.00 2,722.11 5,277.89 15 103,140.32 20,000.00 8,251.23 11,748.77
5 55,213.37 8,000.00 2,484.60 5,515.40 16 91,391.54 20,000.00 7,311.32 12,688.68
6 49,697.97 8,000.00 2,236.41 5,763.59 17 78,702.87 20,000.00 6,296.23 13,703.77
7 43,934.38 8,000.00 1,977.05 6,022.95 18 64,999.10 20,000.00 5,199.93 14,800.07
8 37,911.42 8,000.00 1,706.01 6,293.99 19 50,199.03 20,000.00 4,015.92 15,984.08
9 31,617.44 8,000.00 1,422.78 6,577.22 20 34,214.95 20,000.00 2,737.20 17,262.80
10 25,040.22 8,000.00 1,126.81 6,873.19 21 16,952.14 18,308.31 1,356.17 0.00
11 18,167.03 8,000.00 817.52 7,182.48
12 10,984.55 8,000.00 494.30 7,505.70
13 3,478.85 3,635.40 156.55 0.00

Problem 7 Problem 10

Period Balance Payment Interest Paid Payment for Principal

1 100,000.00 10,000.00 7,500.00 2,500.00 Period Balance Payment Interest Paid Payment for Principal
2 97,500.00 10,000.00 7,312.50 2,687.50 1 250,000.00 25,000.00 15,000.00 10,000.00
3 94,812.50 10,000.00 7,110.94 2,889.06 2 240,000.00 25,000.00 14,400.00 10,600.00
4 91,923.44 10,000.00 6,894.26 3,105.74 3 229,400.00 25,000.00 13,764.00 11,236.00
5 88,817.70 10,000.00 6,661.33 3,338.67 4 218,164.00 25,000.00 13,089.84 11,910.16
6 85,479.02 10,000.00 6,410.93 3,589.07 5 206,253.84 25,000.00 12,375.23 12,624.77
7 81,889.95 10,000.00 6,141.75 3,858.25 6 193,629.07 25,000.00 11,617.74 13,382.26
8 78,031.70 10,000.00 5,852.38 4,147.62 7 180,246.81 25,000.00 10,814.81 14,185.19
9 73,884.07 10,000.00 5,541.31 4,458.69 8 166,061.62 25,000.00 9,963.70 15,036.30
10 69,425.38 10,000.00 5,206.90 4,793.10 9 151,025.32 25,000.00 9,061.52 15,938.48
11 64,632.28 10,000.00 4,847.42 5,152.58 10 135,086.84 25,000.00 8,105.21 16,894.79
12 59,479.70 10,000.00 4,460.98 5,539.02 11 118,192.05 25,000.00 7,091.52 17,908.48
13 53,940.68 10,000.00 4,045.55 5,954.45 12 100,283.57 25,000.00 6,017.01 18,982.99
14 47,986.23 10,000.00 3,598.97 6,401.03 13 81,300.59 25,000.00 4,878.04 20,121.96
15 41,585.20 10,000.00 3,118.89 6,881.11 14 61,178.62 25,000.00 3,670.72 21,329.28
16 34,704.09 10,000.00 2,602.81 7,397.19 15 39,849.34 25,000.00 2,390.96 22,609.04
17 27,306.89 10,000.00 2,048.02 7,951.98 16 17,240.30 18,274.72 1,034.42 0.00
18 19,354.91 10,000.00 1,451.62 8,548.38
19 10,806.53 10,000.00 810.49 9,189.51
20 1,617.02 1,738.30 121.28 0.00
Problem 8

Period Balance Payment Interest Paid Payment for Principal

1 50,000.00 12,500.00 2,500.00 10,000.00
2 40,000.00 12,500.00 2,000.00 10,500.00
3 29,500.00 12,500.00 1,475.00 11,025.00
4 18,475.00 12,500.00 923.75 11,576.25
5 6,898.75 7,243.69 344.94 0.00
 Exercise 18

Problem 1 Problem 4
Period Beginning Interest Payment Ending
Period Beginning Interest Payment Ending
1 57,649.76 57,649.76
1 7,500.00 7,500.00
2 57,649.76 5,188.48 57,649.76 120,488.00
2 7,500.00 225.00 7,500.00 15,225.00
3 120,488.00 10,843.92 57,649.76 188,981.68
3 15,225.00 456.75 7,500.00 23,181.75
4 188,981.68 17,008.35 57,649.76 263,639.79
4 23,181.75 695.45 7,500.00 31,377.20
5 263,639.79 23,727.58 57,649.76 345,017.13
5 31,377.20 941.32 7,500.00 39,818.52
6 345,017.13 31,051.54 57,649.76 433,718.43
6 39,818.52 1,194.56 7,500.00 48,513.07
7 433,718.43 39,034.66 57,649.76 530,402.85
7 48,513.07 1,455.39 7,500.00 57,468.47
8 530,402.85 47,736.26 57,649.76 635,788.87
8 57,468.47 1,724.05 7,500.00 66,692.52
9 635,788.87 57,221.00 57,649.76 750,659.63
9 66,692.52 2,000.78 7,500.00 76,193.30
10 750,659.63 67,559.37 57,649.76 875,868.75
10 76,193.30 2,285.80 7,500.00 85,979.09
11 875,868.75 78,828.19 57,649.76 1,012,346.70
12 1,012,346.70 91,111.20 57,649.76 1,161,107.66
Problem 2 13 1,161,107.66 104,499.69 57,649.76 1,323,257.11
14 1,323,257.11 119,093.14 57,649.76 1,500,000.01
Period Beginning Interest Payment Ending
1 18,966.99 18,966.99
2 18,966.99 1,138.02 18,966.99 39,072.00
Problem 5
3 39,072.00 2,344.32 18,966.99 60,383.31
Period Beginning Interest Payment Ending
4 60,383.31 3,623.00 18,966.99 82,973.30
1 57,649.76 57,649.76
5 82,973.30 4,978.40 18,966.99 106,918.69
2 57,649.76 5,188.48 57,649.76 120,488.00
6 106,918.69 6,415.12 18,966.99 132,300.80
3 120,488.00 10,843.92 57,649.76 188,981.68
7 132,300.80 7,938.05 18,966.99 159,205.83
4 188,981.68 17,008.35 57,649.76 263,639.79
8 159,205.83 9,552.35 18,966.99 187,725.17
5 263,639.79 23,727.58 57,649.76 345,017.13
9 187,725.17 11,263.51 18,966.99 217,955.68
6 345,017.13 31,051.54 57,649.76 433,718.43
10 217,955.68 13,077.34 18,966.99 250,000.01
7 433,718.43 39,034.66 57,649.76 530,402.85
8 530,402.85 47,736.26 57,649.76 635,788.87
Problem 3 9 635,788.87 57,221.00 57,649.76 750,659.63
10 750,659.63 67,559.37 57,649.76 875,868.75
Period Beginning Interest Payment Ending
11 875,868.75 78,828.19 57,649.76 1,012,346.70
1 5,436.91 5,436.91
12 1,012,346.70 91,111.20 57,649.76 1,161,107.66
2 5,436.91 326.21 5,436.91 11,200.03
13 1,161,107.66 104,499.69 57,649.76 1,323,257.11
3 11,200.03 672.00 5,436.91 17,308.95
14 1,323,257.11 119,093.14 57,649.76 1,500,000.01
4 17,308.95 1,038.54 5,436.91 23,784.39
5 23,784.39 1,427.06 5,436.91 30,648.37
6 30,648.37 1,838.90 5,436.91 37,924.18
Problem 6
7 37,924.18 2,275.45 5,436.91 45,636.54
Period Beginning Interest Payment Ending
8 45,636.54 2,738.19 5,436.91 53,811.64
1 9,380.22 9,380.22
9 53,811.64 3,228.70 5,436.91 62,477.25
2 9,380.22 1,500.84 9,380.22 20,261.28
10 62,477.25 3,748.64 5,436.91 71,662.80
3 20,261.28 3,241.80 9,380.22 32,883.30
11 71,662.80 4,299.77 5,436.91 81,399.47
4 32,883.30 5,261.33 9,380.22 47,524.85
12 81,399.47 4,883.97 5,436.91 91,720.35
5 47,524.85 7,603.98 9,380.22 64,509.04
13 91,720.35 5,503.22 5,436.91 102,660.48
6 64,509.04 10,321.45 9,380.22 84,210.71
14 102,660.48 6,159.63 5,436.91 114,257.02
7 84,210.71 13,473.71 9,380.22 107,064.64
15 114,257.02 6,855.42 5,436.91 126,549.35
8 107,064.64 17,130.34 9,380.22 133,575.21
16 126,549.35 7,592.96 5,436.91 139,579.22
9 133,575.21 21,372.03 9,380.22 164,327.46
17 139,579.22 8,374.75 5,436.91 153,390.89
10 164,327.46 26,292.39 9,380.22 200,000.07
18 153,390.89 9,203.45 5,436.91 168,031.25
19 168,031.25 10,081.88 5,436.91 183,550.04
20 183,550.04 11,013.00 5,436.91 199,999.95
Problem 7 Problem 10
Period Beginning Interest Payment Ending Period Beginning Interest Payment Ending
1 10,500.00 10,500.00 1 59,628.43 59,628.43
2 10,500.00 393.75 10,500.00 21,393.75 2 59,628.43 2,981.42 59,628.43 122,238.28
3 21,393.75 802.27 10,500.00 32,696.02 3 122,238.28 6,111.91 59,628.43 187,978.63
4 32,696.02 1,226.10 10,500.00 44,422.12 4 187,978.63 9,398.93 59,628.43 257,005.99
5 44,422.12 1,665.83 10,500.00 56,587.95 5 257,005.99 12,850.30 59,628.43 329,484.72
6 56,587.95 2,122.05 10,500.00 69,209.99 6 329,484.72 16,474.24 59,628.43 405,587.38
7 69,209.99 2,595.37 10,500.00 82,305.37 7 405,587.38 20,279.37 59,628.43 485,495.18
8 82,305.37 3,086.45 10,500.00 95,891.82 8 485,495.18 24,274.76 59,628.43 569,398.37
9 95,891.82 3,595.94 10,500.00 109,987.76 9 569,398.37 28,469.92 59,628.43 657,496.72
10 109,987.76 4,124.54 10,500.00 124,612.30 10 657,496.72 32,874.84 59,628.43 749,999.98
11 124,612.30 4,672.96 10,500.00 139,785.27
12 139,785.27 5,241.95 10,500.00 155,527.21
13 155,527.21 5,832.27 10,500.00 171,859.48
14 171,859.48 6,444.73 10,500.00 188,804.21
15 188,804.21 7,080.16 10,500.00 206,384.37
16 206,384.37 7,739.41 10,500.00 224,623.79
17 224,623.79 8,423.39 10,500.00 243,547.18
18 243,547.18 9,133.02 10,500.00 263,180.20
19 263,180.20 9,869.26 10,500.00 283,549.45
20 283,549.45 10,633.10 10,500.00 304,682.56

Problem 8
Period Beginning Interest Payment Ending
1 30,500.00 30,500.00
2 30,500.00 610.00 30,500.00 61,610.00
3 61,610.00 1,232.20 30,500.00 93,342.20
4 93,342.20 1,866.84 30,500.00 125,709.04
5 125,709.04 2,514.18 30,500.00 158,723.22
6 158,723.22 3,174.46 30,500.00 192,397.69
7 192,397.69 3,847.95 30,500.00 226,745.64
8 226,745.64 4,534.91 30,500.00 261,780.56
9 261,780.56 5,235.61 30,500.00 297,516.17
10 297,516.17 5,950.32 30,500.00 333,966.49
11 333,966.49 6,679.33 30,500.00 371,145.82
12 371,145.82 7,422.92 30,500.00 409,068.74
13 409,068.74 8,181.37 30,500.00 447,750.11
14 447,750.11 8,955.00 30,500.00 487,205.11
15 487,205.11 9,744.10 30,500.00 527,449.22
16 527,449.22 10,548.98 30,500.00 568,498.20
17 568,498.20 11,369.96 30,500.00 610,368.16
18 610,368.16 12,207.36 30,500.00 653,075.53
19 653,075.53 13,061.51 30,500.00 696,637.04
20 696,637.04 13,932.74 30,500.00 741,069.78

Problem 9
Period Beginning Interest Payment Ending
1 4,594.59 4,594.59
2 4,594.59 344.59 4,594.59 9,533.77
3 9,533.77 715.03 4,594.59 14,843.40
4 14,843.40 1,113.25 4,594.59 20,551.24
5 20,551.24 1,541.34 4,594.59 26,687.18
6 26,687.18 2,001.54 4,594.59 33,283.30
7 33,283.30 2,496.25 4,594.59 40,374.14
8 40,374.14 3,028.06 4,594.59 47,996.79
9 47,996.79 3,599.76 4,594.59 56,191.14
10 56,191.14 4,214.34 4,594.59 65,000.07