Question

You bought an apartment which wan in a 20-year mortgage of 10,000,000 from the bank ABC. The bank ABC asked you pay back the loan by monthly payment on 3.6% nomonal interest rate with 3-year grace(pay interest only). You have stayed with the bank ABC for 5 yesrd and your Minimum Attractive Rate of Return(MARR) is 0.75% per month

(1)What is the monthly payment that you are asked to make now

(2)what is the interest you have paid so far

(3)what is the remaining principal

Answer 1

	A	Loan Amount	$10,000,000
	B	Monthly interest =(3.6/12)%	0.30%
	C=A*B	Monthly Payment for first three years	$30,000
	1	Amount you are asked to pay now (per month)	$30,000
	D=C*3*12	Total payment in three years	$1,080,000
	Pv	Principal Balance at the end of 3 years	$10,000,000
	Nper	Balance payment period in months=17*12	204
	Rate	Monthly interest rate	0.30%
	PMT	Monthly payment from year 4 onwards	$65,611.39	(Using PMT function of excel with Rate =0.3%, Nper=204,Pv=-10000000)
	E=PMT*24	Payment made in balance 2 years(5-3)	$1,574,673
	F=D+E	Total payment made in 5 years	$2,654,673
		Principal Balance at end of 5 years =Present Value of remaining payment for 15 years
	Rate	Interest rate	0.30%
	Nper	Number of months payment remaining after year5	180	(15*12)
	Pmt	Monthly payment	$65,611.39
	PV	Principal Balance at end of 5 years =	$9,115,181	(Using PV function of excel with Rate =0.3%, Nper=180,Pmt=-65611.39)
	G	Total Principal Paid	$884,819	(10000000-9115181)
	2	Interest paid so far =2654673-884819	$1,769,855
	3	Amount of remaining Principal	$9,115,181