Amortize the debt problem

Question

Monthly payments are made on 130000 dollars at 5% for 25 days. Determine the payment needed to amortize the debt.

Answer 1

A useful formula is $P=R\cdot \frac{1-(1+i)^{-n}}{i}$, where $P$ is the size of the loan (principal); $i$ is the interest rate per period (not the annual rate); and $n$ is the number of interest periods over the life of the loan.

Answer 2

Here is a slick way to calculate the amortization schedule for the debt. I have made adjustment of the 25 day rate to monthly rate (actual over 360) and computed interest based on that. Hope this is what you meant.

Thanks

Satish