Ok i have this problem, its a 12 year business loan worth million APR is 10%
I was asked to prepare a loan Amortization table and then asked
find the ration total interest payments to total repayments over the 12 years
I think i’ve worked out the loan repayments
PVA Factor: (1-91/(1+0.1)^12))/0.1) = 6.81
loan payments is 1mil/6.81 = 146842.88
but im getting stuck on the interest ratio part, is it as simple as 10% * 1million (then multiply this by 12 years?) or is there another formula i need to use!
thanks again for any help
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