Annuity Repayment Table

To illustrate the loan to the repayment plan, an annuity repayment table is usually used. Usually the annuity listed in the table is a rounding annuity.

The Formula of Annuity

Information:
A = Annuity
C = Initial mode
i = Percentage of interest per period
n = Period

Example Question of Annuity Repayment Table

A $10,000,000 loan is repaid with an annual annuity at an interest rate of 12% / yr for 8 years. If the annuity payment is rounded up in the hundreds of thousands, specify:

a. The amount of an annuity before and after is rounded
b. Table of annuity repayment plan
c. Payment of last annuity

Answer:
C = $10,000,000
i = 12%/year = 0.12/year
n = 8 years

a. The amount of annuity

So when rounded up in the hundreds of thousands, then the annuity is $2,100,000.

b. Table of annuity repayment plan

Information :

Loan at the beginning of year 2 = loan balance at the end of year 1
Loan at the beginning of the 3rd year = the remaining loan at the end of year 2, and so on
Interest + installment of each class = annuity of rounding results upward, except the end row (row 8)
Remaining loan at the end of year 1 = loan beginning 1st year - 1st installment
Remaining second year end loan = loan beginning 2nd year - 2nd installment, and so on.
Last installment = loan at the beginning of the last year.

C. Payment of the last annuity