I am trying to solve the following problem and I am not quite sure what it means.
A loan of 100,000 is payable over five years with monthly payments of 60,000 commencing one month after the inception date. The loan repayment is 2,000 per month and the nominal rate 10 percent. How much capital remains at the end of five years?
I am not quite understanding the vocabulary here.
I understand that the effective monthly rate is $i =10/12$% and it is an annuity immediate problem.
So the future value can be calculated as
$$FV = 2000s_{{\over{60|}i}}$$
But I am not understanding the meaning of "payable" and "monthly payments of 60000"
Is 100000 the total capital of how much the person is borrowing or is it the interest of what needs to be paid, or something else?
Can I get some help?