Planit:Loan Calculator Exercise Answer Key

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Canada English

Solve for the following problem: You have just borrowed $1,600 from the Local Bank at 15% per annum (p.a.) and will repay the loan in monthly installments over a 6-month period. Payments will cover interest due and repayment of principal. Determine the monthly installments of the loan, assuming monthly compounding. Solve for the following problem: You would like to buy a new car but cannot afford to make a monthly payment of more than $500 per month, in order to maintain your current lifestyle. Payments will cover principal and interest owed. Your bank offered to grant you a loan of $15,000 at a rate of 10% interest, compounded monthly. If you decided to take this offer, at a monthly payment of $500, how many months would it take you to pay off your loan? Solve for the following problem: This is the third anniversary of the first five year term of a $200,000 mortgage, with a rate of 10.25% compounded semiannually over a 20 year amortization period. Payments are made monthly. What is the balance of the mortgage after the three years (today)? What will be the balance at the end of the five (5) year term? The clients have decided to take advantage of increasing their payments on their mortgage loan by 10% each year starting at the first anniversary in order to save substantial funds. What affect will this have on: The balance of the mortgage after three years (today)? The balance at the end of the five (5) year term? TIP: After entering the anniversary lump sum into the appropriate field and recalculating you will notice the Amortization has decreased.   Answer 1: Select Loan Calculator from the Calculators drop down menu on the home page. Enter the $1,600 principal in the Amount borrowed field. Enter the current date as the Loan Date. Enter the Renewal Date as the Loan Date plus the amortization period (6 months later). Enter an Interest Rate of 15%. Click the drop-down menu beside the Compounding field and choose Monthly. Set the Amortization to months using the radio buttons to the right and enter 6 for the amortization period. Click the drop down menu under Payment Type and choose the Blended payment option. Note: "Blended payments" refer to payments made by the mortgagor that go against the interest owed and the principal of the loan simultaneously. If necessary change the Frequency of Payments to the Monthly option. Click on the Calculate button next to Payment. The result should be $278.45 Answer 2: Select Loan Calculator from the Calculators drop down menu on the home page. Enter the $15,000 amount in the Amount borrowed field. Enter the current date as the Loan Date. Leave the Renewal Date at the default of the current date, since the amortization period is unknown. It will automatically update when the Amortization is calculated. Enter an Interest Rate of 10%. Click the drop down menu under the Compounding field and choose Monthly. Ensure that the Amortization is set to Months using the radio buttons. Click the drop down menu under Payment Type and choose the Blended payment option. If necessary change the Frequency of Payments to the Monthly option. Enter a payment amount of $500 in the Payment field Click Calculate beside the Amortization Period. The amortization should be 35 months. Answer 3: Select Loan Calculator from the Calculators drop-down menu on the Home page. Enter the $200,000 amount in the Amount borrowed field. Enter the Loan Date as three years ago today. Enter the Renewal Date as the Loan Date plus 5 years, since at the end of the term the interest rate will change. Enter an Interest Rate of 10.25%. Click the drop down menu under the Compounding field and choose Semi-Annual. Set the Amortization to years using the radio buttons to the right and enter 20 for the amortization period. Click the drop down menu under Payment Type and choose the Blended payment option. If necessary change the Frequency of Payments to the Monthly option. Click on the Calculate button next to Payment. The monthly payment should be $1,935.05 Click on the Schedule button at the bottom of the screen to view the payment schedule. Identify the Balance that remains after payment number 36 or at today’s date, and payment number 60 (5 years). The balance of the mortgage should be $189,042.95 and $179,683.95 respectively. Exit back to the Loan Calculator and enter 10% in the Increase/Year field measuring percentages and not dollar amounts. Click Calculate beside the Amortization field. The result should be 9.25 years. Click on the Schedule button at the bottom of the screen to view the payment schedule. Identify the Balance that remains after payment number 36 (3 years) or today’s date, and payment number 60 (5 years). The balance of the mortgage should be $180,542.62 and $148,552.05 respectively. Subtract these values from the original mortgage balances at the end of three years to determine the difference, or effect of the increase in payments. The difference should be $8,500.33 and $31,131.90 respectively.

United States of America

Solve for the following problem: You have just borrowed $1,600 from the Local Bank at 15% per annum (p.a.) and will repay the loan in monthly installments over a 6-month period. Payments will cover interest due and repayment of principal. Determine the monthly installments of the loan, assuming monthly compounding. Solve for the following problem: You would like to buy a new car but cannot afford to make a monthly payment of more than $500 per month, in order to maintain your current lifestyle. Payments will cover principal and interest owed. Your bank offered to grant you a loan of $15,000 at a rate of 10% interest, compounded monthly. If you decided to take this offer, at a monthly payment of $500, how many months would it take you to pay off your loan? Solve for the following problem: This is the third anniversary of the first five year term of a $200,000 mortgage, with a rate of 10.25% compounded semiannually over a 20 year amortization period. Payments are made monthly. What is the balance of the mortgage after the three years (today)? What will be the balance at the end of the five (5) year term? The clients have decided to take advantage of increasing their payments on their mortgage loan by 10% each year starting at the first anniversary in order to save substantial funds. What affect will this have on: The balance of the mortgage after three years (today)? The balance at the end of the five (5) year term? TIP: After entering the anniversary lump sum into the appropriate field and recalculating you will notice the Amortization has decreased.   Answer 1: Select Loan Calculator from the Calculators drop down menu on the home page. Enter the $1,600 principal in the Amount borrowed field. Enter the current date as the Loan Date. Enter the Renewal Date as the Loan Date plus the amortization period (6 months later). Enter an Interest Rate of 15%. Click the drop-down menu beside the Compounding field and choose Monthly. Set the Amortization to months using the radio buttons to the right and enter 6 for the amortization period. Click the drop down menu under Payment Type and choose the Blended payment option. Note: "Blended payments" refer to payments made by the mortgagor that go against the interest owed and the principal of the loan simultaneously. If necessary change the Frequency of Payments to the Monthly option. Click on the Calculate button next to Payment. The result should be $278.45 Answer 2: Select Loan Calculator from the Calculators drop down menu on the home page. Enter the $15,000 amount in the Amount borrowed field. Enter the current date as the Loan Date. Leave the Renewal Date at the default of the current date, since the amortization period is unknown. It will automatically update when the Amortization is calculated. Enter an Interest Rate of 10%. Click the drop down menu under the Compounding field and choose Monthly. Ensure that the Amortization is set to Months using the radio buttons. Click the drop down menu under Payment Type and choose the Blended payment option. If necessary change the Frequency of Payments to the Monthly option. Enter a payment amount of $500 in the Payment field Click Calculate beside the Amortization Period. The amortization should be 35 months. Answer 3: Select Loan Calculator from the Calculators drop-down menu on the Home page. Enter the $200,000 amount in the Amount borrowed field. Enter the Loan Date as three years ago today. Enter the Renewal Date as the Loan Date plus 5 years, since at the end of the term the interest rate will change. Enter an Interest Rate of 10.25%. Click the drop down menu under the Compounding field and choose Semi-Annual. Set the Amortization to years using the radio buttons to the right and enter 20 for the amortization period. Click the drop down menu under Payment Type and choose the Blended payment option. If necessary change the Frequency of Payments to the Monthly option. Click on the Calculate button next to Payment. The monthly payment should be $1,935.05 Click on the Schedule button at the bottom of the screen to view the payment schedule. Identify the Balance that remains after payment number 36 or at today’s date, and payment number 60 (5 years). The balance of the mortgage should be $189,042.95 and $179,683.95 respectively. Exit back to the Loan Calculator and enter 10% in the Increase/Year field measuring percentages and not dollar amounts. Click Calculate beside the Amortization field. The result should be 9.25 years. Click on the Schedule button at the bottom of the screen to view the payment schedule. Identify the Balance that remains after payment number 36 (3 years) or today’s date, and payment number 60 (5 years). The balance of the mortgage should be $180,542.62 and $148,552.05 respectively. Subtract these values from the original mortgage balances at the end of three years to determine the difference, or effect of the increase in payments. The difference should be $8,500.33 and $31,131.90 respectively.

Argentina

Solve for the following problem: You have just borrowed $6 000 from the Local Bank at 15% per annum (p.a.) and will repay the loan in monthly installments over a 6-month period. Payments will cover interest due and repayment of principal. Determine the monthly installments of the loan, assuming monthly compounding. Solve for the following problem: You would like to buy a new car but cannot afford to make a monthly payment of more than $2 000 per month, in order to maintain your current lifestyle. Payments will cover principal and interest owed. Your bank offered to grant you a loan of $60 000 at a rate of 10% interest, compounded monthly. If you decided to take this offer, at a monthly payment of $2 000, how many months would it take you to pay off your loan? Solve for the following problem: This is the third anniversary of the first five year term of a $765 000 mortgage, with a rate of 10.25% compounded semiannually over a 20 year amortization period. Payments are made monthly. What is the balance of the mortgage after the three years (today)? What will be the balance at the end of the five (5) year term? The clients have decided to take advantage of increasing their payments on their mortgage loan by 10% each year starting at the first anniversary in order to save substantial funds. What affect will this have on: The balance of the mortgage after three years (today)? The balance at the end of the five (5) year term? TIP: After entering the anniversary lump sum into the appropriate field and recalculating you will notice the Amortization has decreased.   Answer 1: Select Loan Calculator from the Calculators drop down menu on the home page. Enter the $6 000 principal in the Amount borrowed field. Enter the current date as the Loan Date. Enter the Renewal Date as the Loan Date plus the amortization period (6 months later). Enter an Interest Rate of 15%. Click the drop-down menu beside the Compounding field and choose Monthly. Set the Amortization to months using the radio buttons to the right and enter 6 for the amortization period. Click the drop down menu under Payment Type and choose the Blended payment option. Note: "Blended payments" refer to payments made by the mortgagor that go against the interest owed and the principal of the loan simultaneously. If necessary change the Frequency of Payments to the Monthly option. Click on the Calculate button next to Payment. The result should be $1 044.20 Answer 2: Select Loan Calculator from the Calculators drop down menu on the home page. Enter the $60 000 amount in the Amount borrowed field. Enter the current date as the Loan Date. Leave the Renewal Date at the default of the current date, since the amortization period is unknown. It will automatically update when the Amortization is calculated. Enter an Interest Rate of 10%. Click the drop down menu under the Compounding field and choose Monthly. Ensure that the Amortization is set to Months using the radio buttons. Click the drop down menu under Payment Type and choose the Blended payment option. If necessary change the Frequency of Payments to the Monthly option. Enter a payment amount of $2 000 in the Payment field Click Calculate beside the Amortization Period. The amortization should be 35 months. Answer 3: Select Loan Calculator from the Calculators drop-down menu on the Home page. Enter the $765 000 amount in the Amount borrowed field. Enter the Loan Date as three years ago today. Enter the Renewal Date as the Loan Date plus 5 years, since at the end of the term the interest rate will change. Enter an Interest Rate of 10.25%. Click the drop down menu under the Compounding field and choose Semi-Annual. Set the Amortization to years using the radio buttons to the right and enter 20 for the amortization period. Click the drop down menu under Payment Type and choose the Blended payment option. If necessary change the Frequency of Payments to the Monthly option. Click on the Calculate button next to Payment. The monthly payment should be $7 401.55 Click on the Schedule button at the bottom of the screen to view the payment schedule. Identify the Balance that remains after payment number 36 or at today’s date, and payment number 60 (5 years). The balance of the mortgage should be $723 089.96 and $687 292.36 respectively. Exit back to the Loan Calculator and enter 10% in the Increase/Year field measuring percentages and not dollar amounts. Click Calculate beside the Amortization field. The result should be 9.25 years. Click on the Schedule button at the bottom of the screen to view the payment schedule. Identify the Balance that remains after payment number 36 (3 years) or today’s date, and payment number 60 (5 years). The balance of the mortgage should be $690 576.27 and $568 213.10 respectively. Subtract these values from the original mortgage balances at the end of three years to determine the difference, or effect of the increase in payments. The difference should be $32 513.69 and $119 079.26 respectively.

Brazil

Solve for the following problem: You have just borrowed R$115 000 from the Local Bank at 15% per annum (p.a.) and will repay the loan in monthly installments over a 6-month period. Payments will cover interest due and repayment of principal. Determine the monthly installments of the loan, assuming monthly compounding. Solve for the following problem: You would like to buy a new car but cannot afford to make a monthly payment of more than R$35 000 per month, in order to maintain your current lifestyle. Payments will cover principal and interest owed. Your bank offered to grant you a loan of R$1 100 000 at a rate of 10% interest, compounded monthly. If you decided to take this offer, at a monthly payment of R$35 000, how many months would it take you to pay off your loan? Solve for the following problem: This is the third anniversary of the first five year term of a R$14 400 000 mortgage, with a rate of 10.25% compounded semiannually over a 20 year amortization period. Payments are made monthly. What is the balance of the mortgage after the three years (today)? What will be the balance at the end of the five (5) year term? The clients have decided to take advantage of increasing their payments on their mortgage loan by 10% each year starting at the first anniversary in order to save substantial funds. What affect will this have on: The balance of the mortgage after three years (today)? The balance at the end of the five (5) year term? TIP: After entering the anniversary lump sum into the appropriate field and recalculating you will notice the Amortization has decreased.   Answer 1: Select Loan Calculator from the Calculators drop down menu on the home page. Enter the R$115 000 principal in the Amount borrowed field. Enter the current date as the Loan Date. Enter the Renewal Date as the Loan Date plus the amortization period (6 months later). Enter an Interest Rate of 15%. Click the drop-down menu beside the Compounding field and choose Monthly. Set the Amortization to months using the radio buttons to the right and enter 6 for the amortization period. Click the drop down menu under Payment Type and choose the Blended payment option. Note: "Blended payments" refer to payments made by the mortgagor that go against the interest owed and the principal of the loan simultaneously. If necessary change the Frequency of Payments to the Monthly option. Click on the Calculate button next to Payment. The result should be R$20 013.89 Answer 2: Select Loan Calculator from the Calculators drop down menu on the home page. Enter the R$1 100 000 amount in the Amount borrowed field. Enter the current date as the Loan Date. Leave the Renewal Date at the default of the current date, since the amortization period is unknown. It will automatically update when the Amortization is calculated. Enter an Interest Rate of 10%. Click the drop down menu under the Compounding field and choose Monthly. Ensure that the Amortization is set to Months using the radio buttons. Click the drop down menu under Payment Type and choose the Blended payment option. If necessary change the Frequency of Payments to the Monthly option. Enter a payment amount of R$35 000 in the Payment field Click Calculate beside the Amortization Period. The amortization should be 35 months. Answer 3: Select Loan Calculator from the Calculators drop-down menu on the Home page. Enter the R$14 400 000 amount in the Amount borrowed field. Enter the Loan Date as three years ago today. Enter the Renewal Date as the Loan Date plus 5 years, since at the end of the term the interest rate will change. Enter an Interest Rate of 10.25%. Click the drop down menu under the Compounding field and choose Semi-Annual. Set the Amortization to years using the radio buttons to the right and enter 20 for the amortization period. Click the drop down menu under Payment Type and choose the Blended payment option. If necessary change the Frequency of Payments to the Monthly option. Click on the Calculate button next to Payment. The monthly payment should be R$139 323.33 Click on the Schedule button at the bottom of the screen to view the payment schedule. Identify the Balance that remains after payment number 36 or at today’s date, and payment number 60 (5 years). The balance of the mortgage should be R$13 611 103.54 and R$12 937 265.20 respectively. Exit back to the Loan Calculator and enter 10% in the Increase/Year field measuring percentages and not dollar amounts. Click Calculate beside the Amortization field. The result should be 9.25 years. Click on the Schedule button at the bottom of the screen to view the payment schedule. Identify the Balance that remains after payment number 36 (3 years) or today’s date, and payment number 60 (5 years). The balance of the mortgage should be R$12 999 081.05 and R$10 695 772.58 respectively. Subtract these values from the original mortgage balances at the end of three years to determine the difference, or effect of the increase in payments. The difference should be R$612 022.49 and R$2 241 492.62 respectively.

United Kingdom

Solve for the following problem: You have just borrowed £1 000 from the Local Bank at 15% per annum (p.a.) and will repay the loan in monthly installments over a 6-month period. Payments will cover interest due and repayment of principal. Determine the monthly installments of the loan, assuming monthly compounding. Solve for the following problem: You would like to buy a new car but cannot afford to make a monthly payment of more than £300 per month, in order to maintain your current lifestyle. Payments will cover principal and interest owed. Your bank offered to grant you a loan of £9 000 at a rate of 10% interest, compounded monthly. If you decided to take this offer, at a monthly payment of £300, how many months would it take you to pay off your loan? Solve for the following problem: This is the third anniversary of the first five year term of a £125 000 mortgage, with a rate of 10.25% compounded semiannually over a 20 year amortization period. Payments are made monthly. What is the balance of the mortgage after the three years (today)? What will be the balance at the end of the five (5) year term? The clients have decided to take advantage of increasing their payments on their mortgage loan by 10% each year starting at the first anniversary in order to save substantial funds. What affect will this have on: The balance of the mortgage after three years (today)? The balance at the end of the five (5) year term? TIP: After entering the anniversary lump sum into the appropriate field and recalculating you will notice the Amortization has decreased.   Answer 1: Select Loan Calculator from the Calculators drop down menu on the home page. Enter the £1 000 principal in the Amount borrowed field. Enter the current date as the Loan Date. Enter the Renewal Date as the Loan Date plus the amortization period (6 months later). Enter an Interest Rate of 15%. Click the drop-down menu beside the Compounding field and choose Monthly. Set the Amortization to months using the radio buttons to the right and enter 6 for the amortization period. Click the drop down menu under Payment Type and choose the Blended payment option. Note: "Blended payments" refer to payments made by the mortgagor that go against the interest owed and the principal of the loan simultaneously. If necessary change the Frequency of Payments to the Monthly option. Click on the Calculate button next to Payment. The result should be £174.03 Answer 2: Select Loan Calculator from the Calculators drop down menu on the home page. Enter the £9 000 amount in the Amount borrowed field. Enter the current date as the Loan Date. Leave the Renewal Date at the default of the current date, since the amortization period is unknown. It will automatically update when the Amortization is calculated. Enter an Interest Rate of 10%. Click the drop down menu under the Compounding field and choose Monthly. Ensure that the Amortization is set to Months using the radio buttons. Click the drop down menu under Payment Type and choose the Blended payment option. If necessary change the Frequency of Payments to the Monthly option. Enter a payment amount of £300 in the Payment field Click Calculate beside the Amortization Period. The amortization should be 35 months. Answer 3: Select Loan Calculator from the Calculators drop-down menu on the Home page. Enter the £125 000 amount in the Amount borrowed field. Enter the Loan Date as three years ago today. Enter the Renewal Date as the Loan Date plus 5 years, since at the end of the term the interest rate will change. Enter an Interest Rate of 10.25%. Click the drop down menu under the Compounding field and choose Semi-Annual. Set the Amortization to years using the radio buttons to the right and enter 20 for the amortization period. Click the drop down menu under Payment Type and choose the Blended payment option. If necessary change the Frequency of Payments to the Monthly option. Click on the Calculate button next to Payment. The monthly payment should be £1 209.40 Click on the Schedule button at the bottom of the screen to view the payment schedule. Identify the Balance that remains after payment number 36 or at today’s date, and payment number 60 (5 years). The balance of the mortgage should be £118 152.10 and £112 302.95 respectively. Exit back to the Loan Calculator and enter 10% in the Increase/Year field measuring percentages and not dollar amounts. Click Calculate beside the Amortization field. The result should be 9.25 years. Click on the Schedule button at the bottom of the screen to view the payment schedule. Identify the Balance that remains after payment number 36 (3 years) or today’s date, and payment number 60 (5 years). The balance of the mortgage should be £112 839.43 and £92 845.61 respectively. Subtract these values from the original mortgage balances at the end of three years to determine the difference, or effect of the increase in payments. The difference should be £5 312.67 and £19 457.34 respectively.

Russia

Solve for the following problem: You have just borrowed руб.50 000 from the Local Bank at 15% per annum (p.a.) and will repay the loan in monthly installments over a 6-month period. Payments will cover interest due and repayment of principal. Determine the monthly installments of the loan, assuming monthly compounding. Solve for the following problem: You would like to buy a new car but cannot afford to make a monthly payment of more than руб.15 000 per month, in order to maintain your current lifestyle. Payments will cover principal and interest owed. Your bank offered to grant you a loan of руб.450 000 at a rate of 10% interest, compounded monthly. If you decided to take this offer, at a monthly payment of руб.15 000, how many months would it take you to pay off your loan? Solve for the following problem: This is the third anniversary of the first five year term of a руб.6 000 000 mortgage, with a rate of 10.25% compounded semiannually over a 20 year amortization period. Payments are made monthly. What is the balance of the mortgage after the three years (today)? What will be the balance at the end of the five (5) year term? The clients have decided to take advantage of increasing their payments on their mortgage loan by 10% each year starting at the first anniversary in order to save substantial funds. What affect will this have on: The balance of the mortgage after three years (today)? The balance at the end of the five (5) year term? TIP: After entering the anniversary lump sum into the appropriate field and recalculating you will notice the Amortization has decreased.   Answer 1: Select Loan Calculator from the Calculators drop down menu on the home page. Enter the руб.50 000 principal in the Amount borrowed field. Enter the current date as the Loan Date. Enter the Renewal Date as the Loan Date plus the amortization period (6 months later). Enter an Interest Rate of 15%. Click the drop-down menu beside the Compounding field and choose Monthly. Set the Amortization to months using the radio buttons to the right and enter 6 for the amortization period. Click the drop down menu under Payment Type and choose the Blended payment option. Note: "Blended payments" refer to payments made by the mortgagor that go against the interest owed and the principal of the loan simultaneously. If necessary change the Frequency of Payments to the Monthly option. Click on the Calculate button next to Payment. The result should be руб.8 701.69 Answer 2: Select Loan Calculator from the Calculators drop down menu on the home page. Enter the руб.450 000 amount in the Amount borrowed field. Enter the current date as the Loan Date. Leave the Renewal Date at the default of the current date, since the amortization period is unknown. It will automatically update when the Amortization is calculated. Enter an Interest Rate of 10%. Click the drop down menu under the Compounding field and choose Monthly. Ensure that the Amortization is set to Months using the radio buttons. Click the drop down menu under Payment Type and choose the Blended payment option. If necessary change the Frequency of Payments to the Monthly option. Enter a payment amount of руб.15 000 in the Payment field Click Calculate beside the Amortization Period. The amortization should be 35 months. Answer 3: Select Loan Calculator from the Calculators drop-down menu on the Home page. Enter the руб.6 000 000 amount in the Amount borrowed field. Enter the Loan Date as three years ago today. Enter the Renewal Date as the Loan Date plus 5 years, since at the end of the term the interest rate will change. Enter an Interest Rate of 10.25%. Click the drop down menu under the Compounding field and choose Semi-Annual. Set the Amortization to years using the radio buttons to the right and enter 20 for the amortization period. Click the drop down menu under Payment Type and choose the Blended payment option. If necessary change the Frequency of Payments to the Monthly option. Click on the Calculate button next to Payment. The monthly payment should be руб.58 051.39 Click on the Schedule button at the bottom of the screen to view the payment schedule. Identify the Balance that remains after payment number 36 or at today’s date, and payment number 60 (5 years). The balance of the mortgage should be руб.5 671 293.04 and руб.5 390 526.97 respectively. Exit back to the Loan Calculator and enter 10% in the Increase/Year field measuring percentages and not dollar amounts. Click Calculate beside the Amortization field. The result should be 9.25 years. Click on the Schedule button at the bottom of the screen to view the payment schedule. Identify the Balance that remains after payment number 36 (3 years) or today’s date, and payment number 60 (5 years). The balance of the mortgage should be руб.5 416 283.65 and руб.4 456 571.67 respectively. Subtract these values from the original mortgage balances at the end of three years to determine the difference, or effect of the increase in payments. The difference should be руб.255 009.39 and руб.933 955.3 respectively.

China

Solve for the following problem: You have just borrowed ¥10 000 from the Local Bank at 15% per annum (p.a.) and will repay the loan in monthly installments over a 6-month period. Payments will cover interest due and repayment of principal. Determine the monthly installments of the loan, assuming monthly compounding. Solve for the following problem: You would like to buy a new car but cannot afford to make a monthly payment of more than ¥3 000 per month, in order to maintain your current lifestyle. Payments will cover principal and interest owed. Your bank offered to grant you a loan of ¥100 000 at a rate of 10% interest, compounded monthly. If you decided to take this offer, at a monthly payment of ¥3 000, how many months would it take you to pay off your loan? Solve for the following problem: This is the third anniversary of the first five year term of a ¥1 300 000 mortgage, with a rate of 10.25% compounded semiannually over a 20 year amortization period. Payments are made monthly. What is the balance of the mortgage after the three years (today)? What will be the balance at the end of the five (5) year term? The clients have decided to take advantage of increasing their payments on their mortgage loan by 10% each year starting at the first anniversary in order to save substantial funds. What affect will this have on: The balance of the mortgage after three years (today)? The balance at the end of the five (5) year term? TIP: After entering the anniversary lump sum into the appropriate field and recalculating you will notice the Amortization has decreased.   Answer 1: Select Loan Calculator from the Calculators drop down menu on the home page. Enter the ¥10 000 principal in the Amount borrowed field. Enter the current date as the Loan Date. Enter the Renewal Date as the Loan Date plus the amortization period (6 months later). Enter an Interest Rate of 15%. Click the drop-down menu beside the Compounding field and choose Monthly. Set the Amortization to months using the radio buttons to the right and enter 6 for the amortization period. Click the drop down menu under Payment Type and choose the Blended payment option. Note: "Blended payments" refer to payments made by the mortgagor that go against the interest owed and the principal of the loan simultaneously. If necessary change the Frequency of Payments to the Monthly option. Click on the Calculate button next to Payment. The result should be ¥1 740.34 Answer 2: Select Loan Calculator from the Calculators drop down menu on the home page. Enter the ¥100 000 amount in the Amount borrowed field. Enter the current date as the Loan Date. Leave the Renewal Date at the default of the current date, since the amortization period is unknown. It will automatically update when the Amortization is calculated. Enter an Interest Rate of 10%. Click the drop down menu under the Compounding field and choose Monthly. Ensure that the Amortization is set to Months using the radio buttons. Click the drop down menu under Payment Type and choose the Blended payment option. If necessary change the Frequency of Payments to the Monthly option. Enter a payment amount of ¥3 000 in the Payment field Click Calculate beside the Amortization Period. The amortization should be 35 months. Answer 3: Select Loan Calculator from the Calculators drop-down menu on the Home page. Enter the ¥300 000 amount in the Amount borrowed field. Enter the Loan Date as three years ago today. Enter the Renewal Date as the Loan Date plus 5 years, since at the end of the term the interest rate will change. Enter an Interest Rate of 10.25%. Click the drop down menu under the Compounding field and choose Semi-Annual. Set the Amortization to years using the radio buttons to the right and enter 20 for the amortization period. Click the drop down menu under Payment Type and choose the Blended payment option. If necessary change the Frequency of Payments to the Monthly option. Click on the Calculate button next to Payment. The monthly payment should be ¥2 902.57 Click on the Schedule button at the bottom of the screen to view the payment schedule. Identify the Balance that remains after payment number 36 or at today’s date, and payment number 60 (5 years). The balance of the mortgage should be ¥283 564.63 and ¥269 526.31 respectively. Exit back to the Loan Calculator and enter 10% in the Increase/Year field measuring percentages and not dollar amounts. Click Calculate beside the Amortization field. The result should be 9.25 years. Click on the Schedule button at the bottom of the screen to view the payment schedule. Identify the Balance that remains after payment number 36 (3 years) or today’s date, and payment number 60 (5 years). The balance of the mortgage should be ¥270 814.16 and ¥222 828.54 respectively. Subtract these values from the original mortgage balances at the end of three years to determine the difference, or effect of the increase in payments. The difference should be ¥12 750.47 and ¥46 697.77 respectively.

Malaysia

Solve for the following problem: You have just borrowed RM5 000 from the Local Bank at 15% per annum (p.a.) and will repay the loan in monthly installments over a 6-month period. Payments will cover interest due and repayment of principal. Determine the monthly installments of the loan, assuming monthly compounding. Solve for the following problem: You would like to buy a new car but cannot afford to make a monthly payment of more than RM1 500 per month, in order to maintain your current lifestyle. Payments will cover principal and interest owed. Your bank offered to grant you a loan of RM45 000 at a rate of 10% interest, compounded monthly. If you decided to take this offer, at a monthly payment of RM1 500, how many months would it take you to pay off your loan? Solve for the following problem: This is the third anniversary of the first five year term of a RM600 000 mortgage, with a rate of 10.25% compounded semiannually over a 20 year amortization period. Payments are made monthly. What is the balance of the mortgage after the three years (today)? What will be the balance at the end of the five (5) year term? The clients have decided to take advantage of increasing their payments on their mortgage loan by 10% each year starting at the first anniversary in order to save substantial funds. What affect will this have on: The balance of the mortgage after three years (today)? The balance at the end of the five (5) year term? TIP: After entering the anniversary lump sum into the appropriate field and recalculating you will notice the Amortization has decreased.   Answer 1: Select Loan Calculator from the Calculators drop down menu on the home page. Enter the RM5 000 principal in the Amount borrowed field. Enter the current date as the Loan Date. Enter the Renewal Date as the Loan Date plus the amortization period (6 months later). Enter an Interest Rate of 15%. Click the drop-down menu beside the Compounding field and choose Monthly. Set the Amortization to months using the radio buttons to the right and enter 6 for the amortization period. Click the drop down menu under Payment Type and choose the Blended payment option. Note: "Blended payments" refer to payments made by the mortgagor that go against the interest owed and the principal of the loan simultaneously. If necessary change the Frequency of Payments to the Monthly option. Click on the Calculate button next to Payment. The result should be RM870.17 Answer 2: Select Loan Calculator from the Calculators drop down menu on the home page. Enter the RM45 000 amount in the Amount borrowed field. Enter the current date as the Loan Date. Leave the Renewal Date at the default of the current date, since the amortization period is unknown. It will automatically update when the Amortization is calculated. Enter an Interest Rate of 10%. Click the drop down menu under the Compounding field and choose Monthly. Ensure that the Amortization is set to Months using the radio buttons. Click the drop down menu under Payment Type and choose the Blended payment option. If necessary change the Frequency of Payments to the Monthly option. Enter a payment amount of RM1 500 in the Payment field Click Calculate beside the Amortization Period. The amortization should be 35 months. Answer 3: Select Loan Calculator from the Calculators drop-down menu on the Home page. Enter the RM600 000 amount in the Amount borrowed field. Enter the Loan Date as three years ago today. Enter the Renewal Date as the Loan Date plus 5 years, since at the end of the term the interest rate will change. Enter an Interest Rate of 10.25%. Click the drop down menu under the Compounding field and choose Semi-Annual. Set the Amortization to years using the radio buttons to the right and enter 20 for the amortization period. Click the drop down menu under Payment Type and choose the Blended payment option. If necessary change the Frequency of Payments to the Monthly option. Click on the Calculate button next to Payment. The monthly payment should be RM5 805.14 Click on the Schedule button at the bottom of the screen to view the payment schedule. Identify the Balance that remains after payment number 36 or at today’s date, and payment number 60 (5 years). The balance of the mortgage should be RM567 129.26 and RM539 052.62 respectively. Exit back to the Loan Calculator and enter 10% in the Increase/Year field measuring percentages and not dollar amounts. Click Calculate beside the Amortization field. The result should be 9.25 years. Click on the Schedule button at the bottom of the screen to view the payment schedule. Identify the Balance that remains after payment number 36 (3 years) or today’s date, and payment number 60 (5 years). The balance of the mortgage should be RM541 628.32 and RM445 657.07 respectively. Subtract these values from the original mortgage balances at the end of three years to determine the difference, or effect of the increase in payments. The difference should be RM25 500.94 and RM93 395.55 respectively.

Singapore

Solve for the following problem: You have just borrowed S$2 000 from the Local Bank at 15% per annum (p.a.) and will repay the loan in monthly installments over a 6-month period. Payments will cover interest due and repayment of principal. Determine the monthly installments of the loan, assuming monthly compounding. Solve for the following problem: You would like to buy a new car but cannot afford to make a monthly payment of more than S$650 per month, in order to maintain your current lifestyle. Payments will cover principal and interest owed. Your bank offered to grant you a loan of S$20 000 at a rate of 10% interest, compounded monthly. If you decided to take this offer, at a monthly payment of S$650, how many months would it take you to pay off your loan? Solve for the following problem: This is the third anniversary of the first five year term of a S$260 000 mortgage, with a rate of 10.25% compounded semiannually over a 20 year amortization period. Payments are made monthly. What is the balance of the mortgage after the three years (today)? What will be the balance at the end of the five (5) year term? The clients have decided to take advantage of increasing their payments on their mortgage loan by 10% each year starting at the first anniversary in order to save substantial funds. What affect will this have on: The balance of the mortgage after three years (today)? The balance at the end of the five (5) year term? TIP: After entering the anniversary lump sum into the appropriate field and recalculating you will notice the Amortization has decreased.   Answer 1: Select Loan Calculator from the Calculators drop down menu on the home page. Enter the S$2 000 principal in the Amount borrowed field. Enter the current date as the Loan Date. Enter the Renewal Date as the Loan Date plus the amortization period (6 months later). Enter an Interest Rate of 15%. Click the drop-down menu beside the Compounding field and choose Monthly. Set the Amortization to months using the radio buttons to the right and enter 6 for the amortization period. Click the drop down menu under Payment Type and choose the Blended payment option. Note: "Blended payments" refer to payments made by the mortgagor that go against the interest owed and the principal of the loan simultaneously. If necessary change the Frequency of Payments to the Monthly option. Click on the Calculate button next to Payment. The result should be S$348.07 Answer 2: Select Loan Calculator from the Calculators drop down menu on the home page. Enter the S$20 000 amount in the Amount borrowed field. Enter the current date as the Loan Date. Leave the Renewal Date at the default of the current date, since the amortization period is unknown. It will automatically update when the Amortization is calculated. Enter an Interest Rate of 10%. Click the drop down menu under the Compounding field and choose Monthly. Ensure that the Amortization is set to Months using the radio buttons. Click the drop down menu under Payment Type and choose the Blended payment option. If necessary change the Frequency of Payments to the Monthly option. Enter a payment amount of S$650 in the Payment field Click Calculate beside the Amortization Period. The amortization should be 35 months. Answer 3: Select Loan Calculator from the Calculators drop-down menu on the Home page. Enter the S$260 000 amount in the Amount borrowed field. Enter the Loan Date as three years ago today. Enter the Renewal Date as the Loan Date plus 5 years, since at the end of the term the interest rate will change. Enter an Interest Rate of 10.25%. Click the drop down menu under the Compounding field and choose Semi-Annual. Set the Amortization to years using the radio buttons to the right and enter 20 for the amortization period. Click the drop down menu under Payment Type and choose the Blended payment option. If necessary change the Frequency of Payments to the Monthly option. Click on the Calculate button next to Payment. The monthly payment should be S$2 515.56 Click on the Schedule button at the bottom of the screen to view the payment schedule. Identify the Balance that remains after payment number 36 or at today’s date, and payment number 60 (5 years). The balance of the mortgage should be S$245 756.04 and S$233 589.52 respectively. Exit back to the Loan Calculator and enter 10% in the Increase/Year field measuring percentages and not dollar amounts. Click Calculate beside the Amortization field. The result should be 9.25 years. Click on the Schedule button at the bottom of the screen to view the payment schedule. Identify the Balance that remains after payment number 36 (3 years) or today’s date, and payment number 60 (5 years). The balance of the mortgage should be S$234 705.64 and S$193 118.13 respectively. Subtract these values from the original mortgage balances at the end of three years to determine the difference, or effect of the increase in payments. The difference should be S$11 050.4 and S$40 471.39 respectively.

Hong Kong

Solve for the following problem: You have just borrowed HK$12 000 from the Local Bank at 15% per annum (p.a.) and will repay the loan in monthly installments over a 6-month period. Payments will cover interest due and repayment of principal. Determine the monthly installments of the loan, assuming monthly compounding. Solve for the following problem: You would like to buy a new car but cannot afford to make a monthly payment of more than HK$4 000 per month, in order to maintain your current lifestyle. Payments will cover principal and interest owed. Your bank offered to grant you a loan of HK$115 000 at a rate of 10% interest, compounded monthly. If you decided to take this offer, at a monthly payment of HK$4 000, how many months would it take you to pay off your loan? Solve for the following problem: This is the third anniversary of the first five year term of a HK$1 500 000 mortgage, with a rate of 10.25% compounded semiannually over a 20 year amortization period. Payments are made monthly. What is the balance of the mortgage after the three years (today)? What will be the balance at the end of the five (5) year term? The clients have decided to take advantage of increasing their payments on their mortgage loan by 10% each year starting at the first anniversary in order to save substantial funds. What affect will this have on: The balance of the mortgage after three years (today)? The balance at the end of the five (5) year term? TIP: After entering the anniversary lump sum into the appropriate field and recalculating you will notice the Amortization has decreased.   Answer 1: Select Loan Calculator from the Calculators drop down menu on the home page. Enter the HK$12 000 principal in the Amount borrowed field. Enter the current date as the Loan Date. Enter the Renewal Date as the Loan Date plus the amortization period (6 months later). Enter an Interest Rate of 15%. Click the drop-down menu beside the Compounding field and choose Monthly. Set the Amortization to months using the radio buttons to the right and enter 6 for the amortization period. Click the drop down menu under Payment Type and choose the Blended payment option. Note: "Blended payments" refer to payments made by the mortgagor that go against the interest owed and the principal of the loan simultaneously. If necessary change the Frequency of Payments to the Monthly option. Click on the Calculate button next to Payment. The result should be HK$2 088.41 Answer 2: Select Loan Calculator from the Calculators drop down menu on the home page. Enter the HK$115 000 amount in the Amount borrowed field. Enter the current date as the Loan Date. Leave the Renewal Date at the default of the current date, since the amortization period is unknown. It will automatically update when the Amortization is calculated. Enter an Interest Rate of 10%. Click the drop down menu under the Compounding field and choose Monthly. Ensure that the Amortization is set to Months using the radio buttons. Click the drop down menu under Payment Type and choose the Blended payment option. If necessary change the Frequency of Payments to the Monthly option. Enter a payment amount of HK$4 000 in the Payment field Click Calculate beside the Amortization Period. The amortization should be 35 months. Answer 3: Select Loan Calculator from the Calculators drop-down menu on the Home page. Enter the HK$1 500 000 amount in the Amount borrowed field. Enter the Loan Date as three years ago today. Enter the Renewal Date as the Loan Date plus 5 years, since at the end of the term the interest rate will change. Enter an Interest Rate of 10.25%. Click the drop down menu under the Compounding field and choose Semi-Annual. Set the Amortization to years using the radio buttons to the right and enter 20 for the amortization period. Click the drop down menu under Payment Type and choose the Blended payment option. If necessary change the Frequency of Payments to the Monthly option. Click on the Calculate button next to Payment. The monthly payment should be HK$14 512.85 Click on the Schedule button at the bottom of the screen to view the payment schedule. Identify the Balance that remains after payment number 36 or at today’s date, and payment number 60 (5 years). The balance of the mortgage should be HK$1 417 823.15 and HK$1 347 631.55 respectively. Exit back to the Loan Calculator and enter 10% in the Increase/Year field measuring percentages and not dollar amounts. Click Calculate beside the Amortization field. The result should be 9.25 years. Click on the Schedule button at the bottom of the screen to view the payment schedule. Identify the Balance that remains after payment number 36 (3 years) or today’s date, and payment number 60 (5 years). The balance of the mortgage should be HK$1 354 070.80 and HK$1 114 142.68 respectively. Subtract these values from the original mortgage balances at the end of three years to determine the difference, or effect of the increase in payments. The difference should be HK$63 767.35 and HK$233 488.87 respectively.

India

Solve for the following problem: You have just borrowed 70 000 from the Local Bank at 15% per annum (p.a.) and will repay the loan in monthly installments over a 6-month period. Payments will cover interest due and repayment of principal. Determine the monthly installments of the loan, assuming monthly compounding. Solve for the following problem: You would like to buy a new car but cannot afford to make a monthly payment of more than 20 000 per month, in order to maintain your current lifestyle. Payments will cover principal and interest owed. Your bank offered to grant you a loan of 660 000 at a rate of 10% interest, compounded monthly. If you decided to take this offer, at a monthly payment of 20 000, how many months would it take you to pay off your loan? Solve for the following problem: This is the third anniversary of the first five year term of a 8 800 000 mortgage, with a rate of 10.25% compounded semiannually over a 20 year amortization period. Payments are made monthly. What is the balance of the mortgage after the three years (today)? What will be the balance at the end of the five (5) year term? The clients have decided to take advantage of increasing their payments on their mortgage loan by 10% each year starting at the first anniversary in order to save substantial funds. What affect will this have on: The balance of the mortgage after three years (today)? The balance at the end of the five (5) year term? TIP: After entering the anniversary lump sum into the appropriate field and recalculating you will notice the Amortization has decreased.   Answer 1: Select Loan Calculator from the Calculators drop down menu on the home page. Enter the 70 000 principal in the Amount borrowed field. Enter the current date as the Loan Date. Enter the Renewal Date as the Loan Date plus the amortization period (6 months later). Enter an Interest Rate of 15%. Click the drop-down menu beside the Compounding field and choose Monthly. Set the Amortization to months using the radio buttons to the right and enter 6 for the amortization period. Click the drop down menu under Payment Type and choose the Blended payment option. Note: "Blended payments" refer to payments made by the mortgagor that go against the interest owed and the principal of the loan simultaneously. If necessary change the Frequency of Payments to the Monthly option. Click on the Calculate button next to Payment. The result should be 12 182.37 Answer 2: Select Loan Calculator from the Calculators drop down menu on the home page. Enter the 660 000 amount in the Amount borrowed field. Enter the current date as the Loan Date. Leave the Renewal Date at the default of the current date, since the amortization period is unknown. It will automatically update when the Amortization is calculated. Enter an Interest Rate of 10%. Click the drop down menu under the Compounding field and choose Monthly. Ensure that the Amortization is set to Months using the radio buttons. Click the drop down menu under Payment Type and choose the Blended payment option. If necessary change the Frequency of Payments to the Monthly option. Enter a payment amount of 20 000 in the Payment field Click Calculate beside the Amortization Period. The amortization should be 35 months. Answer 3: Select Loan Calculator from the Calculators drop-down menu on the Home page. Enter the 8 800 000 amount in the Amount borrowed field. Enter the Loan Date as three years ago today. Enter the Renewal Date as the Loan Date plus 5 years, since at the end of the term the interest rate will change. Enter an Interest Rate of 10.25%. Click the drop down menu under the Compounding field and choose Semi-Annual. Set the Amortization to years using the radio buttons to the right and enter 20 for the amortization period. Click the drop down menu under Payment Type and choose the Blended payment option. If necessary change the Frequency of Payments to the Monthly option. Click on the Calculate button next to Payment. The monthly payment should be 85 142.04 Click on the Schedule button at the bottom of the screen to view the payment schedule. Identify the Balance that remains after payment number 36 or at today’s date, and payment number 60 (5 years). The balance of the mortgage should be 8 317 896.40 and 7 906 106.12 respectively. Exit back to the Loan Calculator and enter 10% in the Increase/Year field measuring percentages and not dollar amounts. Click Calculate beside the Amortization field. The result should be 9.25 years. Click on the Schedule button at the bottom of the screen to view the payment schedule. Identify the Balance that remains after payment number 36 (3 years) or today’s date, and payment number 60 (5 years). The balance of the mortgage should be 7 943 882.63 and 6 536 305.00 respectively. Subtract these values from the original mortgage balances at the end of three years to determine the difference, or effect of the increase in payments. The difference should be 374 013.77 and 1 369 801.12 respectively.

Caribbean

Jamaica   Solve for the following problem: You have just borrowed J$130 000 from the Local Bank at 15% per annum (p.a.) and will repay the loan in monthly installments over a 6-month period. Payments will cover interest due and repayment of principal. Determine the monthly installments of the loan, assuming monthly compounding. Solve for the following problem: You would like to buy a new car but cannot afford to make a monthly payment of more than J$40 000 per month, in order to maintain your current lifestyle. Payments will cover principal and interest owed. Your bank offered to grant you a loan of J$1 200 000 at a rate of 10% interest, compounded monthly. If you decided to take this offer, at a monthly payment of J$40 000, how many months would it take you to pay off your loan? Solve for the following problem: This is the third anniversary of the first five year term of a J$16 500 000 mortgage, with a rate of 10.25% compounded semiannually over a 20 year amortization period. Payments are made monthly. What is the balance of the mortgage after the three years (today)? What will be the balance at the end of the five (5) year term? The clients have decided to take advantage of increasing their payments on their mortgage loan by 10% each year starting at the first anniversary in order to save substantial funds. What affect will this have on: The balance of the mortgage after three years (today)? The balance at the end of the five (5) year term? TIP: After entering the anniversary lump sum into the appropriate field and recalculating you will notice the Amortization has decreased.   Answer 1: Select Loan Calculator from the Calculators drop down menu on the home page. Enter the J$130 000 principal in the Amount borrowed field. Enter the current date as the Loan Date. Enter the Renewal Date as the Loan Date plus the amortization period (6 months later). Enter an Interest Rate of 15%. Click the drop-down menu beside the Compounding field and choose Monthly. Set the Amortization to months using the radio buttons to the right and enter 6 for the amortization period. Click the drop down menu under Payment Type and choose the Blended payment option. Note: "Blended payments" refer to payments made by the mortgagor that go against the interest owed and the principal of the loan simultaneously. If necessary change the Frequency of Payments to the Monthly option. Click on the Calculate button next to Payment. The result should be J$22 624.40 Answer 2: Select Loan Calculator from the Calculators drop down menu on the home page. Enter the J$1 200 000 amount in the Amount borrowed field. Enter the current date as the Loan Date. Leave the Renewal Date at the default of the current date, since the amortization period is unknown. It will automatically update when the Amortization is calculated. Enter an Interest Rate of 10%. Click the drop down menu under the Compounding field and choose Monthly. Ensure that the Amortization is set to Months using the radio buttons. Click the drop down menu under Payment Type and choose the Blended payment option. If necessary change the Frequency of Payments to the Monthly option. Enter a payment amount of J$40 000 in the Payment field Click Calculate beside the Amortization Period. The amortization should be 35 months. Answer 3: Select Loan Calculator from the Calculators drop-down menu on the Home page. Enter the J$16 500 000 amount in the Amount borrowed field. Enter the Loan Date as three years ago today. Enter the Renewal Date as the Loan Date plus 5 years, since at the end of the term the interest rate will change. Enter an Interest Rate of 10.25%. Click the drop down menu under the Compounding field and choose Semi-Annual. Set the Amortization to years using the radio buttons to the right and enter 20 for the amortization period. Click the drop down menu under Payment Type and choose the Blended payment option. If necessary change the Frequency of Payments to the Monthly option. Click on the Calculate button next to Payment. The monthly payment should be J$159 641.32 Click on the Schedule button at the bottom of the screen to view the payment schedule. Identify the Balance that remains after payment number 36 or at today’s date, and payment number 60 (5 years). The balance of the mortgage should be J$15 596 055.95 and J$14 823 949.37 respectively. Exit back to the Loan Calculator and enter 10% in the Increase/Year field measuring percentages and not dollar amounts. Click Calculate beside the Amortization field. The result should be 9.25 years. Click on the Schedule button at the bottom of the screen to view the payment schedule. Identify the Balance that remains after payment number 36 (3 years) or today’s date, and payment number 60 (5 years). The balance of the mortgage should be J$14 894 780.16 and J$12 255 572.34 respectively. Subtract these values from the original mortgage balances at the end of three years to determine the difference, or effect of the increase in payments. The difference should be J$701 275.79 and J$2 568 377.03 respectively. Trinidad and Tobago   Solve for the following problem: You have just borrowed TT$10 000 from the Local Bank at 15% per annum (p.a.) and will repay the loan in monthly installments over a 6-month period. Payments will cover interest due and repayment of principal. Determine the monthly installments of the loan, assuming monthly compounding. Solve for the following problem: You would like to buy a new car but cannot afford to make a monthly payment of more than TT$3 000 per month, in order to maintain your current lifestyle. Payments will cover principal and interest owed. Your bank offered to grant you a loan of TT$90 000 at a rate of 10% interest, compounded monthly. If you decided to take this offer, at a monthly payment of TT$3 000, how many months would it take you to pay off your loan? Solve for the following problem: This is the third anniversary of the first five year term of a TT$1 200 000 mortgage, with a rate of 10.25% compounded semiannually over a 20 year amortization period. Payments are made monthly. What is the balance of the mortgage after the three years (today)? What will be the balance at the end of the five (5) year term? The clients have decided to take advantage of increasing their payments on their mortgage loan by 10% each year starting at the first anniversary in order to save substantial funds. What affect will this have on: The balance of the mortgage after three years (today)? The balance at the end of the five (5) year term? TIP: After entering the anniversary lump sum into the appropriate field and recalculating you will notice the Amortization has decreased.   Answer 1: Select Loan Calculator from the Calculators drop down menu on the home page. Enter the TT$10 000 principal in the Amount borrowed field. Enter the current date as the Loan Date. Enter the Renewal Date as the Loan Date plus the amortization period (6 months later). Enter an Interest Rate of 15%. Click the drop-down menu beside the Compounding field and choose Monthly. Set the Amortization to months using the radio buttons to the right and enter 6 for the amortization period. Click the drop down menu under Payment Type and choose the Blended payment option. Note: "Blended payments" refer to payments made by the mortgagor that go against the interest owed and the principal of the loan simultaneously. If necessary change the Frequency of Payments to the Monthly option. Click on the Calculate button next to Payment. The result should be TT$1 740.34 Answer 2: Select Loan Calculator from the Calculators drop down menu on the home page. Enter the TT$90 000 amount in the Amount borrowed field. Enter the current date as the Loan Date. Leave the Renewal Date at the default of the current date, since the amortization period is unknown. It will automatically update when the Amortization is calculated. Enter an Interest Rate of 10%. Click the drop down menu under the Compounding field and choose Monthly. Ensure that the Amortization is set to Months using the radio buttons. Click the drop down menu under Payment Type and choose the Blended payment option. If necessary change the Frequency of Payments to the Monthly option. Enter a payment amount of TT$3 000 in the Payment field Click Calculate beside the Amortization Period. The amortization should be 35 months. Answer 3: Select Loan Calculator from the Calculators drop-down menu on the Home page. Enter the TT$1 200 000 amount in the Amount borrowed field. Enter the Loan Date as three years ago today. Enter the Renewal Date as the Loan Date plus 5 years, since at the end of the term the interest rate will change. Enter an Interest Rate of 10.25%. Click the drop down menu under the Compounding field and choose Semi-Annual. Set the Amortization to years using the radio buttons to the right and enter 20 for the amortization period. Click the drop down menu under Payment Type and choose the Blended payment option. If necessary change the Frequency of Payments to the Monthly option. Click on the Calculate button next to Payment. The monthly payment should be TT$11 610.28 Click on the Schedule button at the bottom of the screen to view the payment schedule. Identify the Balance that remains after payment number 36 or at today’s date, and payment number 60 (5 years). The balance of the mortgage should be TT$1 134 258.52 and TT$1 078 105.24 respectively. Exit back to the Loan Calculator and enter 10% in the Increase/Year field measuring percentages and not dollar amounts. Click Calculate beside the Amortization field. The result should be 9.25 years. Click on the Schedule button at the bottom of the screen to view the payment schedule. Identify the Balance that remains after payment number 36 (3 years) or today’s date, and payment number 60 (5 years). The balance of the mortgage should be TT$1 083 256.64 and TT$891 314.15 respectively. Subtract these values from the original mortgage balances at the end of three years to determine the difference, or effect of the increase in payments. The difference should be TT$51 001.88 and TT$186 791.09 respectively. Barbados   Solve for the following problem: You have just borrowed Bds$3 000 from the Local Bank at 15% per annum (p.a.) and will repay the loan in monthly installments over a 6-month period. Payments will cover interest due and repayment of principal. Determine the monthly installments of the loan, assuming monthly compounding. Solve for the following problem: You would like to buy a new car but cannot afford to make a monthly payment of more than Bds$1 000 per month, in order to maintain your current lifestyle. Payments will cover principal and interest owed. Your bank offered to grant you a loan of Bds$30 000 at a rate of 10% interest, compounded monthly. If you decided to take this offer, at a monthly payment of Bds$1 000, how many months would it take you to pay off your loan? Solve for the following problem: This is the third anniversary of the first five year term of a Bds$390 000 mortgage, with a rate of 10.25% compounded semiannually over a 20 year amortization period. Payments are made monthly. What is the balance of the mortgage after the three years (today)? What will be the balance at the end of the five (5) year term? The clients have decided to take advantage of increasing their payments on their mortgage loan by 10% each year starting at the first anniversary in order to save substantial funds. What affect will this have on: The balance of the mortgage after three years (today)? The balance at the end of the five (5) year term? TIP: After entering the anniversary lump sum into the appropriate field and recalculating you will notice the Amortization has decreased.   Answer 1: Select Loan Calculator from the Calculators drop down menu on the home page. Enter the Bds$3 000 principal in the Amount borrowed field. Enter the current date as the Loan Date. Enter the Renewal Date as the Loan Date plus the amortization period (6 months later). Enter an Interest Rate of 15%. Click the drop-down menu beside the Compounding field and choose Monthly. Set the Amortization to months using the radio buttons to the right and enter 6 for the amortization period. Click the drop down menu under Payment Type and choose the Blended payment option. Note: "Blended payments" refer to payments made by the mortgagor that go against the interest owed and the principal of the loan simultaneously. If necessary change the Frequency of Payments to the Monthly option. Click on the Calculate button next to Payment. The result should be Bds$522.10 Answer 2: Select Loan Calculator from the Calculators drop down menu on the home page. Enter the Bds$30 000 amount in the Amount borrowed field. Enter the current date as the Loan Date. Leave the Renewal Date at the default of the current date, since the amortization period is unknown. It will automatically update when the Amortization is calculated. Enter an Interest Rate of 10%. Click the drop down menu under the Compounding field and choose Monthly. Ensure that the Amortization is set to Months using the radio buttons. Click the drop down menu under Payment Type and choose the Blended payment option. If necessary change the Frequency of Payments to the Monthly option. Enter a payment amount of Bds$1 000 in the Payment field Click Calculate beside the Amortization Period. The amortization should be 35 months. Answer 3: Select Loan Calculator from the Calculators drop-down menu on the Home page. Enter the Bds$390 000 amount in the Amount borrowed field. Enter the Loan Date as three years ago today. Enter the Renewal Date as the Loan Date plus 5 years, since at the end of the term the interest rate will change. Enter an Interest Rate of 10.25%. Click the drop down menu under the Compounding field and choose Semi-Annual. Set the Amortization to years using the radio buttons to the right and enter 20 for the amortization period. Click the drop down menu under Payment Type and choose the Blended payment option. If necessary change the Frequency of Payments to the Monthly option. Click on the Calculate button next to Payment. The monthly payment should be Bds$3 773.34 Click on the Schedule button at the bottom of the screen to view the payment schedule. Identify the Balance that remains after payment number 36 or at today’s date, and payment number 60 (5 years). The balance of the mortgage should be Bds$368 634.06 and Bds$350 384.28 respectively. Exit back to the Loan Calculator and enter 10% in the Increase/Year field measuring percentages and not dollar amounts. Click Calculate beside the Amortization field. The result should be 9.25 years. Click on the Schedule button at the bottom of the screen to view the payment schedule. Identify the Balance that remains after payment number 36 (3 years) or today’s date, and payment number 60 (5 years). The balance of the mortgage should be Bds$352 058.45 and Bds$289 677.19 respectively. Subtract these values from the original mortgage balances at the end of three years to determine the difference, or effect of the increase in payments. The difference should be Bds$16 575.61 and Bds$60 707.09 respectively. Bermuda   Solve for the following problem: You have just borrowed BD$1 500 from the Local Bank at 15% per annum (p.a.) and will repay the loan in monthly installments over a 6-month period. Payments will cover interest due and repayment of principal. Determine the monthly installments of the loan, assuming monthly compounding. Solve for the following problem: You would like to buy a new car but cannot afford to make a monthly payment of more than BD$500 per month, in order to maintain your current lifestyle. Payments will cover principal and interest owed. Your bank offered to grant you a loan of BD$14 500 at a rate of 10% interest, compounded monthly. If you decided to take this offer, at a monthly payment of BD$500, how many months would it take you to pay off your loan? Solve for the following problem: This is the third anniversary of the first five year term of a BD$195 000 mortgage, with a rate of 10.25% compounded semiannually over a 20 year amortization period. Payments are made monthly. What is the balance of the mortgage after the three years (today)? What will be the balance at the end of the five (5) year term? The clients have decided to take advantage of increasing their payments on their mortgage loan by 10% each year starting at the first anniversary in order to save substantial funds. What affect will this have on: The balance of the mortgage after three years (today)? The balance at the end of the five (5) year term? TIP: After entering the anniversary lump sum into the appropriate field and recalculating you will notice the Amortization has decreased.   Answer 1: Select Loan Calculator from the Calculators drop down menu on the home page. Enter the BD$1 500 principal in the Amount borrowed field. Enter the current date as the Loan Date. Enter the Renewal Date as the Loan Date plus the amortization period (6 months later). Enter an Interest Rate of 15%. Click the drop-down menu beside the Compounding field and choose Monthly. Set the Amortization to months using the radio buttons to the right and enter 6 for the amortization period. Click the drop down menu under Payment Type and choose the Blended payment option. Note: "Blended payments" refer to payments made by the mortgagor that go against the interest owed and the principal of the loan simultaneously. If necessary change the Frequency of Payments to the Monthly option. Click on the Calculate button next to Payment. The result should be BD$261.05 Answer 2: Select Loan Calculator from the Calculators drop down menu on the home page. Enter the BD$14 500 amount in the Amount borrowed field. Enter the current date as the Loan Date. Leave the Renewal Date at the default of the current date, since the amortization period is unknown. It will automatically update when the Amortization is calculated. Enter an Interest Rate of 10%. Click the drop down menu under the Compounding field and choose Monthly. Ensure that the Amortization is set to Months using the radio buttons. Click the drop down menu under Payment Type and choose the Blended payment option. If necessary change the Frequency of Payments to the Monthly option. Enter a payment amount of BD$500 in the Payment field Click Calculate beside the Amortization Period. The amortization should be 35 months. Answer 3: Select Loan Calculator from the Calculators drop-down menu on the Home page. Enter the BD${{{Mortgage1}}} amount in the Amount borrowed field. Enter the Loan Date as three years ago today. Enter the Renewal Date as the Loan Date plus 5 years, since at the end of the term the interest rate will change. Enter an Interest Rate of 10.25%. Click the drop down menu under the Compounding field and choose Semi-Annual. Set the Amortization to years using the radio buttons to the right and enter 20 for the amortization period. Click the drop down menu under Payment Type and choose the Blended payment option. If necessary change the Frequency of Payments to the Monthly option. Click on the Calculate button next to Payment. The monthly payment should be BD$1 886.67 Click on the Schedule button at the bottom of the screen to view the payment schedule. Identify the Balance that remains after payment number 36 or at today’s date, and payment number 60 (5 years). The balance of the mortgage should be BD$184 317.03 and BD$175 192.14 respectively. Exit back to the Loan Calculator and enter 10% in the Increase/Year field measuring percentages and not dollar amounts. Click Calculate beside the Amortization field. The result should be 9.25 years. Click on the Schedule button at the bottom of the screen to view the payment schedule. Identify the Balance that remains after payment number 36 (3 years) or today’s date, and payment number 60 (5 years). The balance of the mortgage should be BD$176 029.23 and BD$144 838.60 respectively. Subtract these values from the original mortgage balances at the end of three years to determine the difference, or effect of the increase in payments. The difference should be BD$8 287.80 and BD$30 353.54 respectively. Bahamas   Solve for the following problem: You have just borrowed B$1 500 from the Local Bank at 15% per annum (p.a.) and will repay the loan in monthly installments over a 6-month period. Payments will cover interest due and repayment of principal. Determine the monthly installments of the loan, assuming monthly compounding. Solve for the following problem: You would like to buy a new car but cannot afford to make a monthly payment of more than B$500 per month, in order to maintain your current lifestyle. Payments will cover principal and interest owed. Your bank offered to grant you a loan of B$14 500 at a rate of 10% interest, compounded monthly. If you decided to take this offer, at a monthly payment of B$500, how many months would it take you to pay off your loan? Solve for the following problem: This is the third anniversary of the first five year term of a B$195 000 mortgage, with a rate of 10.25% compounded semiannually over a 20 year amortization period. Payments are made monthly. What is the balance of the mortgage after the three years (today)? What will be the balance at the end of the five (5) year term? The clients have decided to take advantage of increasing their payments on their mortgage loan by 10% each year starting at the first anniversary in order to save substantial funds. What affect will this have on: The balance of the mortgage after three years (today)? The balance at the end of the five (5) year term? TIP: After entering the anniversary lump sum into the appropriate field and recalculating you will notice the Amortization has decreased.   Answer 1: Select Loan Calculator from the Calculators drop down menu on the home page. Enter the B$1 500 principal in the Amount borrowed field. Enter the current date as the Loan Date. Enter the Renewal Date as the Loan Date plus the amortization period (6 months later). Enter an Interest Rate of 15%. Click the drop-down menu beside the Compounding field and choose Monthly. Set the Amortization to months using the radio buttons to the right and enter 6 for the amortization period. Click the drop down menu under Payment Type and choose the Blended payment option. Note: "Blended payments" refer to payments made by the mortgagor that go against the interest owed and the principal of the loan simultaneously. If necessary change the Frequency of Payments to the Monthly option. Click on the Calculate button next to Payment. The result should be B$261.05 Answer 2: Select Loan Calculator from the Calculators drop down menu on the home page. Enter the B$14 500 amount in the Amount borrowed field. Enter the current date as the Loan Date. Leave the Renewal Date at the default of the current date, since the amortization period is unknown. It will automatically update when the Amortization is calculated. Enter an Interest Rate of 10%. Click the drop down menu under the Compounding field and choose Monthly. Ensure that the Amortization is set to Months using the radio buttons. Click the drop down menu under Payment Type and choose the Blended payment option. If necessary change the Frequency of Payments to the Monthly option. Enter a payment amount of B$500 in the Payment field Click Calculate beside the Amortization Period. The amortization should be 35 months. Answer 3: Select Loan Calculator from the Calculators drop-down menu on the Home page. Enter the B$195 000 amount in the Amount borrowed field. Enter the Loan Date as three years ago today. Enter the Renewal Date as the Loan Date plus 5 years, since at the end of the term the interest rate will change. Enter an Interest Rate of 10.25%. Click the drop down menu under the Compounding field and choose Semi-Annual. Set the Amortization to years using the radio buttons to the right and enter 20 for the amortization period. Click the drop down menu under Payment Type and choose the Blended payment option. If necessary change the Frequency of Payments to the Monthly option. Click on the Calculate button next to Payment. The monthly payment should be B$1 886.67 Click on the Schedule button at the bottom of the screen to view the payment schedule. Identify the Balance that remains after payment number 36 or at today’s date, and payment number 60 (5 years). The balance of the mortgage should be B$184 317.03 and B$175 192.14 respectively. Exit back to the Loan Calculator and enter 10% in the Increase/Year field measuring percentages and not dollar amounts. Click Calculate beside the Amortization field. The result should be 9.25 years. Click on the Schedule button at the bottom of the screen to view the payment schedule. Identify the Balance that remains after payment number 36 (3 years) or today’s date, and payment number 60 (5 years). The balance of the mortgage should be B$176 029.23 and B$144 838.60 respectively. Subtract these values from the original mortgage balances at the end of three years to determine the difference, or effect of the increase in payments. The difference should be B$8 287.80 and B$30 353.54 respectively. Puerto Rico   Solve for the following problem: You have just borrowed $1,600 from the Local Bank at 15% per annum (p.a.) and will repay the loan in monthly installments over a 6-month period. Payments will cover interest due and repayment of principal. Determine the monthly installments of the loan, assuming monthly compounding. Solve for the following problem: You would like to buy a new car but cannot afford to make a monthly payment of more than $500 per month, in order to maintain your current lifestyle. Payments will cover principal and interest owed. Your bank offered to grant you a loan of $15,000 at a rate of 10% interest, compounded monthly. If you decided to take this offer, at a monthly payment of $500, how many months would it take you to pay off your loan? Solve for the following problem: This is the third anniversary of the first five year term of a $200,000 mortgage, with a rate of 10.25% compounded semiannually over a 20 year amortization period. Payments are made monthly. What is the balance of the mortgage after the three years (today)? What will be the balance at the end of the five (5) year term? The clients have decided to take advantage of increasing their payments on their mortgage loan by 10% each year starting at the first anniversary in order to save substantial funds. What affect will this have on: The balance of the mortgage after three years (today)? The balance at the end of the five (5) year term? TIP: After entering the anniversary lump sum into the appropriate field and recalculating you will notice the Amortization has decreased.   Answer 1: Select Loan Calculator from the Calculators drop down menu on the home page. Enter the $1,600 principal in the Amount borrowed field. Enter the current date as the Loan Date. Enter the Renewal Date as the Loan Date plus the amortization period (6 months later). Enter an Interest Rate of 15%. Click the drop-down menu beside the Compounding field and choose Monthly. Set the Amortization to months using the radio buttons to the right and enter 6 for the amortization period. Click the drop down menu under Payment Type and choose the Blended payment option. Note: "Blended payments" refer to payments made by the mortgagor that go against the interest owed and the principal of the loan simultaneously. If necessary change the Frequency of Payments to the Monthly option. Click on the Calculate button next to Payment. The result should be $278.45 Answer 2: Select Loan Calculator from the Calculators drop down menu on the home page. Enter the $15,000 amount in the Amount borrowed field. Enter the current date as the Loan Date. Leave the Renewal Date at the default of the current date, since the amortization period is unknown. It will automatically update when the Amortization is calculated. Enter an Interest Rate of 10%. Click the drop down menu under the Compounding field and choose Monthly. Ensure that the Amortization is set to Months using the radio buttons. Click the drop down menu under Payment Type and choose the Blended payment option. If necessary change the Frequency of Payments to the Monthly option. Enter a payment amount of $500 in the Payment field Click Calculate beside the Amortization Period. The amortization should be 35 months. Answer 3: Select Loan Calculator from the Calculators drop-down menu on the Home page. Enter the $200,000 amount in the Amount borrowed field. Enter the Loan Date as three years ago today. Enter the Renewal Date as the Loan Date plus 5 years, since at the end of the term the interest rate will change. Enter an Interest Rate of 10.25%. Click the drop down menu under the Compounding field and choose Semi-Annual. Set the Amortization to years using the radio buttons to the right and enter 20 for the amortization period. Click the drop down menu under Payment Type and choose the Blended payment option. If necessary change the Frequency of Payments to the Monthly option. Click on the Calculate button next to Payment. The monthly payment should be $1,935.05 Click on the Schedule button at the bottom of the screen to view the payment schedule. Identify the Balance that remains after payment number 36 or at today’s date, and payment number 60 (5 years). The balance of the mortgage should be $189,042.95 and $179,683.95 respectively. Exit back to the Loan Calculator and enter 10% in the Increase/Year field measuring percentages and not dollar amounts. Click Calculate beside the Amortization field. The result should be 9.25 years. Click on the Schedule button at the bottom of the screen to view the payment schedule. Identify the Balance that remains after payment number 36 (3 years) or today’s date, and payment number 60 (5 years). The balance of the mortgage should be $180,542.62 and $148,552.05 respectively. Subtract these values from the original mortgage balances at the end of three years to determine the difference, or effect of the increase in payments. The difference should be $8,500.33 and $31,131.90 respectively.

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