FINANCE MATHEMATICS EXAMPLES-II

 All interest rates are annual percentage rate (APR) unless otherwise stated.

1.   A business takes out a bank loan amounting 80,000 TL. Monthly interest rate is 1.3 %. There is also 5 % BSMV on interest. The loan will be paid in monthly installments (monthly payments). Maturity is 36 months.

     a.   What is the monthly cost of the loan?

      b.   What is the effective cost of the loan?

      c.   What is the amount of the monthly payments? (First payment is made at the end of the first month).

      d.  Prepare a repayment schedule (amortization table) for the first four payments.

2.   A business leases a machine. Cost of the machine is 180,000 Euro. Term of the lease agreement is 48 months. Lease payments are made in every month. Monthly interest rate is 0.7 %. First payment is made now. Calculate the amount of monthly lease payments.

3.   A business takes out an investment loan amounting 30,000,000 TL. Interest rate is 15 %. The loan is paid in six-month installments. Payments will be made at the end of every six-month. Maturity is 8 years. There is three-year grace period (first payment will be made at the end of the third year). Calculate the amount of six-month payments.