LOAN AMOUNT $1600000

EMI=P*R(1+R)^N/(1+R)^N-1

WHERE

P= PRINCIPAL AMOUNT

R=INTEREST RATE

N= TENURE IN NUMBER OF MONTHS

=1600000*.075(1+.075)^240/(1+.075)^240-1

=$12889 IS MONTHLY EMI

PRESENT WORTH OF 5 YEAR EMI

DISCOUNT RATE 7.5%

=(12889*12*.930)+(12889*12*.865)+(12889*12*.805)+(12889*12*.749)+(12889*12*.696)

=$725987

FUTURE VALUE @7.5% GROWTH

FUTURE VALUE FORMULA

No.   year   future value   interest   effective rate
1       12,889   0   0%
2       25,858.56   80.56   0.313%
3       38,909.17   242.17   0.626%
4       52,041.35   485.35   0.941%
5       65,255.61   810.61   1.258%
6       78,552.46   1,218.46   1.576%
7       91,932.41   1,709.41   1.895%
8       105,395.99   2,283.99   2.215%
9       118,943.72   2,942.72   2.537%
10       132,576.11   3,686.11   2.86%
11       146,293.71   4,514.71   3.184%
12   1   160,097.05   5,429.05   3.51%
13       173,986.66   6,429.66   3.837%
14       187,963.07   7,517.07   4.166%
15       202,026.84   8,691.84   4.496%
16       216,178.51   9,954.51   4.827%
17       230,418.63   11,305.63   5.16%
18       244,747.74   12,745.74   5.494%
19       259,166.42   14,275.42   5.829%
20       273,675.21   15,895.21   6.166%
21       288,274.68   17,605.68   6.505%
22       302,965.39   19,407.39   6.844%
23       317,747.93   21,300.93   7.185%
24   2   332,622.85   23,286.85   7.528%
25       347,590.74   25,365.74   7.872%
26       362,652.19   27,538.19   8.218%
27       377,807.76   29,804.76   8.565%
28       393,058.06   32,166.06   8.913%
29       408,403.67   34,622.67   9.263%
30       423,845.2   37,175.2   9.614%
31       439,383.23   39,824.23   9.967%
32       455,018.37   42,570.37   10.321%
33       470,751.24   45,414.24   10.677%
34       486,582.43   48,356.43   11.035%
35       502,512.57   51,397.57   11.393%
36   3   518,542.28   54,538.28   11.754%
37       534,672.17   57,779.17   12.116%
38       550,902.87   61,120.87   12.479%
39       567,235.01   64,564.01   12.844%
40       583,669.23   68,109.23   13.211%
41       600,206.16   71,757.16   13.579%
42       616,846.45   75,508.45   13.948%
43       633,590.74   79,363.74   14.32%
44       650,439.68   83,323.68   14.693%
45       667,393.93   87,388.93   15.067%
46       684,454.14   91,560.14   15.443%
47       701,620.98   95,837.98   15.821%
48   4   718,895.11   100,223.11   16.2%
49       736,277.21   104,716.21   16.581%
50       753,767.94   109,317.94   16.963%
51       771,367.99   114,028.99   17.347%
52       789,078.04   118,850.04   17.733%
53       806,898.78   123,781.78   18.12%
54       824,830.9   128,824.9   18.509%
55       842,875.09   133,980.09   18.9%
56       861,032.06   139,248.06   19.292%
57       879,302.51   144,629.51   19.686%
58       897,687.15   150,125.15   20.082%
59       916,186.69   155,735.69   20.479%
60   5   934,801.86   161,461.86   20.879%

=$934801 APPOX AFTER 5 YEARS

IF ENTIRE LOAN IS PAID AFTER PAYING 5 YEARS INSTALLMENT

AMOUNT HE NEEDS TO PAY IS

=$1600000-Principal amount paid in 5 years i.e $209566( calculated by loan amortization)

=$1390434

calculation

Month	EMI	Interest	Principle	Loan Outstanding
1	12889.49	10000	2889.491	1597110.509
2	12889.49	9981.941	2907.55	1594202.958
3	12889.49	9963.768	2925.723	1591277.236
4	12889.49	9945.483	2944.008	1588333.228
5	12889.49	9927.083	2962.408	1585370.819
6	12889.49	9908.568	2980.923	1582389.896
7	12889.49	9889.937	2999.554	1579390.341
8	12889.49	9871.19	3018.301	1576372.04
9	12889.49	9852.325	3037.166	1573334.874
10	12889.49	9833.343	3056.148	1570278.726
11	12889.49	9814.242	3075.249	1567203.477
12	12889.49	9795.022	3094.469	1564109.007
13	12889.49	9775.681	3113.81	1560995.198
14	12889.49	9756.22	3133.271	1557861.927
15	12889.49	9736.637	3152.854	1554709.073
16	12889.49	9716.932	3172.559	1551536.513
17	12889.49	9697.103	3192.388	1548344.125
18	12889.49	9677.151	3212.34	1545131.785
19	12889.49	9657.074	3232.417	1541899.367
20	12889.49	9636.871	3252.62	1538646.747
21	12889.49	9616.542	3272.949	1535373.799
22	12889.49	9596.086	3293.405	1532080.394
23	12889.49	9575.502	3313.989	1528766.405
24	12889.49	9554.79	3334.701	1525431.704
25	12889.49	9533.948	3355.543	1522076.161
26	12889.49	9512.976	3376.515	1518699.646
27	12889.49	9491.873	3397.618	1515302.028
28	12889.49	9470.638	3418.853	1511883.174
29	12889.49	9449.27	3440.221	1508442.953
30	12889.49	9427.768	3461.723	1504981.23
31	12889.49	9406.133	3483.358	1501497.872
32	12889.49	9384.362	3505.129	1497992.742
33	12889.49	9362.455	3527.036	1494465.706
34	12889.49	9340.411	3549.08	1490916.626
35	12889.49	9318.229	3571.262	1487345.363
36	12889.49	9295.909	3593.583	1483751.781
37	12889.49	9273.449	3616.042	1480135.738
38	12889.49	9250.848	3638.643	1476497.096
39	12889.49	9228.107	3661.384	1472835.711
40	12889.49	9205.223	3684.268	1469151.443
41	12889.49	9182.197	3707.295	1465444.149
42	12889.49	9159.026	3730.465	1461713.684
43	12889.49	9135.711	3753.781	1457959.903
44	12889.49	9112.249	3777.242	1454182.661
45	12889.49	9088.642	3800.849	1450381.812
46	12889.49	9064.886	3824.605	1446557.207
47	12889.49	9040.983	3848.509	1442708.699
48	12889.49	9016.929	3872.562	1438836.137
49	12889.49	8992.726	3896.765	1434939.372
50	12889.49	8968.371	3921.12	1431018.252
51	12889.49	8943.864	3945.627	1427072.625
52	12889.49	8919.204	3970.287	1423102.337
53	12889.49	8894.39	3995.101	1419107.236
54	12889.49	8869.42	4020.071	1415087.165
55	12889.49	8844.295	4045.196	1411041.969
56	12889.49	8819.012	4070.479	1406971.49
57	12889.49	8793.572	4095.919	1402875.571
58	12889.49	8767.972	4121.519	1398754.052
59	12889.49	8742.213	4147.278	1394606.774
60	12889.49	8716.292	4173.199	1390433.575
			209566.4

 

please see the attached file.