I'm trying to solve this Loan Amortization Question.
Principal = $125000
Interest = 8.5%
Compounded semi annually
Duration is 10 years (120 months)
Monthly Payments Loan given on 7/31/2009
First payment to be received on 8/31/2009
Create First couple lines of the loan amortization schedule.
I was able to find the Interest, But I'm having trouble calculating the Payment Per Month.
Using the information on this page, Days in the month affecting loans? Daily rate came out to be
Interest1 = ((1+0.00022808998)^31 - 1 ) * 125000 => 886.89 which is correct!
Now I'm stumped on payments. If I can get help to calculate it please.
Answers are here http://snag.gy/LZtId.jpg