Who can help me calculate the total amount of interest?

Question

I am buying a property which is worth Rs. 230,000. I am making a downpayment of Rs. 50,000. The interest rate is 13% p.a. and the period of instalments is 5 years.

Can anyone give me a formula how to calculate

1. Total amount of interest i would be paying in 5 years.
2. The formula how to calculate interest amount.
3. EMI's i would be paying for the next 5 years.

Answer 1

Determining payment amount on items which compound interest is extremely complicated. When I took my Finance and Banking class in college, they told me just to use a calculator.

Anyways, here is what trusty Microsoft Excel came up with:

Total Interest: $63,733
Payment : $4095.55 (60 Months)

Interest is a simple calculation, you take your carrying amount multiplied by the periodic interest rate.

For payment 1, you have a carrying amount of $180,000 (230,000-50,000 down payment). 13% divided by 12 months is approx .010833333%/month. So $180k *.010833333 = $1950 interest.

Carrying amount for payment 2 would be calculated as follows

180,000 Beg Amt
1,950 Interest
<4,096> PMT (Rounded)
--------------
177,854 Principle owed for PMT 2

Then you start the whole process over again.

Excel and this calculator I linked make the process a lot easier and quicker. Good luck!

Answer 2

with a view to spice up money some organizations situation bonds to traders. they're in a position to situation it at par value meaning that's the fairly or face value of the bond. they're in a position to also situation it at low value to make it more effective desirable to traders or situation it at a properly form, raising the face value of the bond. amassed bond pastime fee is recorded interior the corporate’s stability sheet. amassed pastime is the volume of pastime that has already been earned yet has no longer been paid yet. The pastime is amassed on a each and on an ordinary foundation beginning and organizations use distinct options to compute the bond pastime.

Answer 3

Dear Piyush:

It would be much easier for you to go to www.bankrate.com and plug in your numbers. Not only will it answer all your questions, but you'll be able to print out an amortization schedule as well.

Best of luck!

Anne