Finance Loans and Repayments

[Chloe5212]

I am currently studying Finance and am having issues with some questions:

A loan of $100,000 is made today. This loan will be repaid by 10 level repayments, followed by a final smaller repayment, i.e., there are 11 repayments in total.
The first of the level repayments will occur exactly 2 years from today, and each subsequent repayment (including the final smaller repayment) will occur exactly 1 year after the previous repayment. Explicitly, the final repayment will occur exactly 12 years from today.
If the interest is charged on this loan is 4.9% per annum compounded half-yearly, and the final smaller repayment is $570,
Calculate the loan outstanding exactly 1 year from today.

- Thank you for your help

 

[HallsofIvy]

Did you notice that the first repayment is not made until two years from today but the problem asks for the outstanding loan after only one year? So the repayments are not relevant. The only thing relevant is "he interest is charged on this loan is 4.9% per annum compounded half-yearly".

The first half year the interest is 0.049(100000)= $4900 so the loan is now $104900. The interest on that is 0.049(104900)= $5140.10. The outstanding loan at the end of the first year is $110040.10.