Скачать или смотреть Financial Math - How to Calculate Missed Loan Payments and Adjust Monthly Installments

Welcome to Mathenatic! In this video, we dive into an exam-type question focused on missed loan payments, which is a common topic in financial mathematics. Brenda takes out a 20-year loan of 400,000 Rand with an interest rate of 18% compounded monthly. She starts making equal monthly payments immediately after the loan is granted. The goal of this video is to help you understand how to calculate monthly payments, the outstanding balance, and how to adjust payments after missing a few.

The first part of the video explains how to calculate the monthly payments for the loan using the present value annuity formula. With a loan value of 400,000 Rand and a 20-year repayment period, the monthly payment comes out to 6,173.25 Rand. This is a standard calculation that you can follow step by step using the formula from your financial math sheet.

Next, the video covers how to calculate the outstanding balance after the third payment. Using the same present value formula, we find that the remaining balance after three payments is 399,000.68 Rand. This amount represents the loan balance that still needs to be paid off.

The core of the video focuses on the scenario where Brenda misses the fourth, fifth, and sixth payments. To calculate the new monthly payment from the seventh payment onwards, we go through several steps. First, we account for the interest accrued on the outstanding balance over the three months Brenda missed. Then, we adjust the remaining number of payments (n) to reflect the missed payments. Instead of 240 payments, she now has 234 payments left. Finally, using the updated balance and payment details, we calculate the new monthly payment, which comes out to 6,464.56 Rand.

This process involves understanding the impact of missing payments on the loan balance, how to calculate the accumulated interest during the missed months, and how to adjust the repayment schedule accordingly. By the end of the video, you’ll have a solid understanding of how to handle missed payments and adjust your loan payments to keep the repayment plan on track..

This video forms part of our revision for Grade 12 Mathematics, Paper 1 (NSC, CAPS)

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