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Loan Amortisation Schedule

The document provides an example loan amortization schedule for a 150 million Kenyan shilling loan over 48 months at 15% interest per year. It calculates the monthly payment as Ksh4,174,612.24 using the PMT function in Excel. The loan amortization schedule then shows the opening balance, monthly interest, payment amount, principal repayment, and closing balance for each period over the 48 month term.

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Barack Mike
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239 views7 pages

Loan Amortisation Schedule

The document provides an example loan amortization schedule for a 150 million Kenyan shilling loan over 48 months at 15% interest per year. It calculates the monthly payment as Ksh4,174,612.24 using the PMT function in Excel. The loan amortization schedule then shows the opening balance, monthly interest, payment amount, principal repayment, and closing balance for each period over the 48 month term.

Uploaded by

Barack Mike
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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LOAN AMORTISATION SCHEDULE

ILLUSTRATION:
Assume an investor takes an investment loan of Sh. 150,000,000. The loan is for 48 months at an interest
rate of 15% p.a. The payments are to be made at the end of each of the next 48 months.

REQUIRED:
i) Calculate the monthly payment on the loan
ii) Prepare a loan amortisation schedule over the period.

SOLUTION
i) Monthly payment
The amount that the investor shall repay every every month.
It includes INTEREST and PRINCIPAL REPAYMENT
In excel this is given by the function PMT

Principal Loan 150,000,000


Loan duration 48 months
Interest 15% per year
Interest 0.0125 per month

Monthly payment= PMT Tsh.4,174,612.24

ii) Loan Amortisation Schedule


Period Opening bal' Interest Monthly payment Principal Repayment
1 150,000,000.00 1,875,000.00 4,174,612.24 2,299,612.24
2 147,700,387.76 1,846,254.85 4,174,612.24 2,328,357.39
3 145,372,030.37 1,817,150.38 4,174,612.24 2,357,461.86
4 143,014,568.51 1,787,682.11 4,174,612.24 2,386,930.13
5 140,627,638.37 1,757,845.48 4,174,612.24 2,416,766.76
6 138,210,871.61 1,727,635.90 4,174,612.24 2,446,976.34
7 135,763,895.27 1,697,048.69 4,174,612.24 2,477,563.55
8 133,286,331.72 1,666,079.15 4,174,612.24 2,508,533.09
9 130,777,798.63 1,634,722.48 4,174,612.24 2,539,889.76
10 128,237,908.87 1,602,973.86 4,174,612.24 2,571,638.38
11 125,666,270.49 1,570,828.38 4,174,612.24 2,603,783.86
12 123,062,486.63 1,538,281.08 4,174,612.24 2,636,331.16
13 120,426,155.47 1,505,326.94 4,174,612.24 2,669,285.30
14 117,756,870.18 1,471,960.88 4,174,612.24 2,702,651.36
15 115,054,218.81 1,438,177.74 4,174,612.24 2,736,434.50
16 112,317,784.31 1,403,972.30 4,174,612.24 2,770,639.94
17 109,547,144.37 1,369,339.30 4,174,612.24 2,805,272.94
18 106,741,871.44 1,334,273.39 4,174,612.24 2,840,338.85
19 103,901,532.59 1,298,769.16 4,174,612.24 2,875,843.08
20 101,025,689.51 1,262,821.12 4,174,612.24 2,911,791.12
21 98,113,898.39 1,226,423.73 4,174,612.24 2,948,188.51
22 95,165,709.88 1,189,571.37 4,174,612.24 2,985,040.87
23 92,180,669.01 1,152,258.36 4,174,612.24 3,022,353.88
24 89,158,315.13 1,114,478.94 4,174,612.24 3,060,133.30
25 86,098,181.83 1,076,227.27 4,174,612.24 3,098,384.97
26 82,999,796.86 1,037,497.46 4,174,612.24 3,137,114.78
27 79,862,682.09 998,283.53 4,174,612.24 3,176,328.71
28 76,686,353.37 958,579.42 4,174,612.24 3,216,032.82
29 73,470,320.55 918,379.01 4,174,612.24 3,256,233.23
30 70,214,087.32 877,676.09 4,174,612.24 3,296,936.15
31 66,917,151.17 836,464.39 4,174,612.24 3,338,147.85
32 63,579,003.32 794,737.54 4,174,612.24 3,379,874.70
33 60,199,128.62 752,489.11 4,174,612.24 3,422,123.13
34 56,777,005.49 709,712.57 4,174,612.24 3,464,899.67
35 53,312,105.81 666,401.32 4,174,612.24 3,508,210.92
36 49,803,894.90 622,548.69 4,174,612.24 3,552,063.55
37 46,251,831.34 578,147.89 4,174,612.24 3,596,464.35
38 42,655,367.00 533,192.09 4,174,612.24 3,641,420.15
39 39,013,946.84 487,674.34 4,174,612.24 3,686,937.90
40 35,327,008.94 441,587.61 4,174,612.24 3,733,024.63
41 31,593,984.31 394,924.80 4,174,612.24 3,779,687.44
42 27,814,296.87 347,678.71 4,174,612.24 3,826,933.53
43 23,987,363.35 299,842.04 4,174,612.24 3,874,770.20
44 20,112,593.15 251,407.41 4,174,612.24 3,923,204.83
45 16,189,388.32 202,367.35 4,174,612.24 3,972,244.89
46 12,217,143.44 152,714.29 4,174,612.24 4,021,897.95
47 8,195,245.49 102,440.57 4,174,612.24 4,072,171.67
48 4,123,073.82 51,538.42 4,174,612.24 4,123,073.82
is for 48 months at an interest
ext 48 months.

Closing balance
147,700,387.76 Interest/m Lock
145,372,030.37 Monthly
143,014,568.51
140,627,638.37
138,210,871.61
135,763,895.27
133,286,331.72
130,777,798.63
128,237,908.87
125,666,270.49
123,062,486.63
120,426,155.47
117,756,870.18
115,054,218.81
112,317,784.31
109,547,144.37
106,741,871.44
103,901,532.59
101,025,689.51
98,113,898.39
95,165,709.88
92,180,669.01
89,158,315.13
86,098,181.83
82,999,796.86
79,862,682.09
76,686,353.37
73,470,320.55
70,214,087.32
66,917,151.17
63,579,003.32
60,199,128.62
56,777,005.49
53,312,105.81
49,803,894.90
46,251,831.34
42,655,367.00
39,013,946.84
35,327,008.94
31,593,984.31
27,814,296.87
23,987,363.35
20,112,593.15
16,189,388.32
12,217,143.44
8,195,245.49
4,123,073.82
0.00
LOAN AMORTISATION SCHEDULE

ILLUSTRATION:
Assume an investor takes an investment loan of Sh. 150,000,000. The loan is for 48 months at an interest
rate of 15% p.a. The payments are to be made at the end of each of the next 48 months.

REQUIRED:
i) Calculate the monthly payment on the loan
ii) Prepare a loan amortisation schedule over the period.

SOLUTION:
i) Monthly Repayment
Principle loan 150,000,000.00
Period 48 Months
Interest 15% p.a
Interest 0.0125 p.m

Monthly payment = PMT Ksh4,174,612.24 Principle


Interest
ii)
Loan Amortisation Schedule
Period Opening bal' Interest Monthly payment Principle Closing Bal'
1 150,000,000.00 1,875,000.00 Ksh4,174,612.24 Ksh2,299,612.24 147,700,387.76
2 147,700,387.76 1,846,254.85 Ksh4,174,612.24 Ksh2,328,357.39 145,372,030.37
3 145,372,030.37 1,817,150.38 Ksh4,174,612.24 Ksh2,357,461.86 143,014,568.51
4 143,014,568.51 1,787,682.11 Ksh4,174,612.24 Ksh2,386,930.13 140,627,638.37
5 140,627,638.37 1,757,845.48 Ksh4,174,612.24 Ksh2,416,766.76 138,210,871.61
6 138,210,871.61 1,727,635.90 Ksh4,174,612.24 Ksh2,446,976.34 135,763,895.27
7 135,763,895.27 1,697,048.69 Ksh4,174,612.24 Ksh2,477,563.55 133,286,331.72
8 133,286,331.72 1,666,079.15 Ksh4,174,612.24 Ksh2,508,533.09 130,777,798.63
9 130,777,798.63 1,634,722.48 Ksh4,174,612.24 Ksh2,539,889.76 128,237,908.87
10 128,237,908.87 1,602,973.86 Ksh4,174,612.24 Ksh2,571,638.38 125,666,270.49
11 125,666,270.49 1,570,828.38 Ksh4,174,612.24 Ksh2,603,783.86 123,062,486.63
12 123,062,486.63 1,538,281.08 Ksh4,174,612.24 Ksh2,636,331.16 120,426,155.47
13 120,426,155.47 1,505,326.94 Ksh4,174,612.24 Ksh2,669,285.30 117,756,870.18
14 117,756,870.18 1,471,960.88 Ksh4,174,612.24 Ksh2,702,651.36 115,054,218.81
15 115,054,218.81 1,438,177.74 Ksh4,174,612.24 Ksh2,736,434.50 112,317,784.31
16 112,317,784.31 1,403,972.30 Ksh4,174,612.24 Ksh2,770,639.94 109,547,144.37
17 109,547,144.37 1,369,339.30 Ksh4,174,612.24 Ksh2,805,272.94 106,741,871.44
18 106,741,871.44 1,334,273.39 Ksh4,174,612.24 Ksh2,840,338.85 103,901,532.59
19 103,901,532.59 1,298,769.16 Ksh4,174,612.24 Ksh2,875,843.08 101,025,689.51
20 101,025,689.51 1,262,821.12 Ksh4,174,612.24 Ksh2,911,791.12 98,113,898.39
21 98,113,898.39 1,226,423.73 Ksh4,174,612.24 Ksh2,948,188.51 95,165,709.88
22 95,165,709.88 1,189,571.37 Ksh4,174,612.24 Ksh2,985,040.87 92,180,669.01
23 92,180,669.01 1,152,258.36 Ksh4,174,612.24 Ksh3,022,353.88 89,158,315.13
24 89,158,315.13 1,114,478.94 Ksh4,174,612.24 Ksh3,060,133.30 86,098,181.83
25 86,098,181.83 1,076,227.27 Ksh4,174,612.24 Ksh3,098,384.97 82,999,796.86
26 82,999,796.86 1,037,497.46 Ksh4,174,612.24 Ksh3,137,114.78 79,862,682.09
27 79,862,682.09 998,283.53 Ksh4,174,612.24 Ksh3,176,328.71 76,686,353.37
28 76,686,353.37 958,579.42 Ksh4,174,612.24 Ksh3,216,032.82 73,470,320.55
29 73,470,320.55 918,379.01 Ksh4,174,612.24 Ksh3,256,233.23 70,214,087.32
30 70,214,087.32 877,676.09 Ksh4,174,612.24 Ksh3,296,936.15 66,917,151.17
31 66,917,151.17 836,464.39 Ksh4,174,612.24 Ksh3,338,147.85 63,579,003.32
32 63,579,003.32 794,737.54 Ksh4,174,612.24 Ksh3,379,874.70 60,199,128.62
33 60,199,128.62 752,489.11 Ksh4,174,612.24 Ksh3,422,123.13 56,777,005.49
34 56,777,005.49 709,712.57 Ksh4,174,612.24 Ksh3,464,899.67 53,312,105.81
35 53,312,105.81 666,401.32 Ksh4,174,612.24 Ksh3,508,210.92 49,803,894.90
36 49,803,894.90 622,548.69 Ksh4,174,612.24 Ksh3,552,063.55 46,251,831.34
37 46,251,831.34 578,147.89 Ksh4,174,612.24 Ksh3,596,464.35 42,655,367.00
38 42,655,367.00 533,192.09 Ksh4,174,612.24 Ksh3,641,420.15 39,013,946.84
39 39,013,946.84 487,674.34 Ksh4,174,612.24 Ksh3,686,937.90 35,327,008.94
40 35,327,008.94 441,587.61 Ksh4,174,612.24 Ksh3,733,024.63 31,593,984.31
41 31,593,984.31 394,924.80 Ksh4,174,612.24 Ksh3,779,687.44 27,814,296.87
42 27,814,296.87 347,678.71 Ksh4,174,612.24 Ksh3,826,933.53 23,987,363.35
43 23,987,363.35 299,842.04 Ksh4,174,612.24 Ksh3,874,770.20 20,112,593.15
44 20,112,593.15 251,407.41 Ksh4,174,612.24 Ksh3,923,204.83 16,189,388.32
45 16,189,388.32 202,367.35 Ksh4,174,612.24 Ksh3,972,244.89 12,217,143.44
46 12,217,143.44 152,714.29 Ksh4,174,612.24 Ksh4,021,897.95 8,195,245.49
47 8,195,245.49 102,440.57 Ksh4,174,612.24 Ksh4,072,171.67 4,123,073.82
48 4,123,073.82 51,538.42 Ksh4,174,612.24 Ksh4,123,073.82 0.00
Constants = Lock

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