D12 Amort Schedule pt 2

Question 1

what is the eqn for P_t using R and v for a loan with level payments?

Answer 1

P_t = R*v^(n-t+1)

Ex. A loan of $100,000 is to be repaid in 30 equal annual payments
starting one year from now. If the annual effective rate of
interest 5%, find P_9.

P_9 = Rv^(n-t+1) = 6505.14v^(30-9+1) = 6505.14(1.05)^-22 = 2223.78

Question 2

what is the eqn for I_t using R and v for a loan with level payments?

Answer 2

I_t = R(1 - v^(n-t+1))

Question 3

what are level payments?

Answer 3

equal payments

Question 4

eqn for compoudning level prin pmts

Answer 4

P_t+k = P_t * (1+i)^k

Question 5

how to write the original loan amt in terms of first prin pmt

Answer 5

L = P_1 s angle n i

Ex.
For a loan with level payments of 1018.52, the principal repaid
in the 5th payment is 297.30 and the interest paid in the 16th
payment is 325.33. Find the loan int rate.

P_16 = P_16
P_5(1+i)^11 = R - I_16
297.30(1+i)^11 = 1018.52 - 325.33
i = 0.08