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Amortising Loan Interest

Forums › ACCA Forums › ACCA FM Financial Management Forums › Amortising Loan Interest

  • This topic has 0 replies, 1 voice, and was last updated 9 years ago by urbansmash.
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  • September 25, 2015 at 4:14 pm #273567
    urbansmash
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    • Topics: 3
    • Replies: 1
    • ☆

    I have a question and I’m not too sure how to go about it?

    M Plc is currently financing an investment project through a 4 year $37,000 amortising loan at 4% interest.

    Q1) How much interest is payable in year 2? …$1,131
    Q2) Using an annuity value of 3.629, how much capital is payable in year 2? …$9,065

    How do I do these calculations… amortise this loan and deal with the interest and capital? (where I got this question, does not show the workings)

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