a) Andrew is a loan officer of Bank A. A bank customer has requested Andrew to present to him how his RM200,000 personal loan is going to be repaid in 36 monthly installments based on an interest rate of 8% p.a.

(i) Calculate the monthly repayment amount and complete the following loan amortization schedule. Year Beginning Value Repayment amount Interest paid Principal paid Ending Value 1 2 3 4 till 36 

(ii) By the 24th installment, the customer intends to make a lump sum payment of RM20,000 in addition to the monthly repayment amount. Prepare another loan amortization table starting from the 25th installment.

(iii) Compute the interest saved when repays an additional RM20,000 at the end of the year 

Answer rating: 100% (QA)

Solution i To calculate the monthly repayment amount for a personal loan of RM200000 with an interest rate of 8 pa and a repayment period of 36 months ... View the full answer