# Answers

1. A person took out an annuity loan of 80 000 € for the purchase of an apartment. The loan period was agreed to be ten years with an interest rate of 6,00%. The loan is repaid monthly.

a) How many installments are there in total?

b) Calculate the interest factor.

c) Calculate the annuity, ie the amount of the installment.

a) Installments 10 ∙ 12 = 120

b) The interest rate factor is obtained by dividing the annual interest rate by 12 (payments 12 times a year), so the interest rate factor is 1,005.

c)

2. A person took out an annuity loan of 80 000 € for the purchase of an apartment. The loan period was agreed to be ten years with an interest rate of 6,00%. The loan is repaid semi-annually.

a) Calculate the interest factor.

b) Calculate the size of the annuity.

c) How much loan is left after eight years of payments?

a) The interest factor is obtained by dividing the annual interest rate 6,00% by two (repayment twice a year). The interest rate factor is 1,03.

3. A loan of 6000 € was taken out for the purchase of a boat. The loan is repaid once a year with a fixed amortization schedule. The loan period was three years and the interest rate was 9,00%.

a) How many installments are on the loan?

b) What is the amount of the principal payment? (How much is paid back of the principal in every payment?)

c) What is the first installment?

d) What is the final installment?

e) How much interest does have to pay in total for the loan?

(You can make a loan calculation, ie a table on loan repayment)

a) Installments 3

b) The amount of the principal payment is 2000 €

c) 2540 €

d) 2180 €