Posted by **Carrie** on Tuesday, March 27, 2012 at 12:02am.

$50,000 loan at 9% for 7yrs. What would be the unpaid balance at the end of the 6th year?

- Business math -
**Henry**, Friday, March 30, 2012 at 10:53pm
Pt = (Po*r*t)/(1-(1+r)^-t).

r = (9%/12)/100% = 0.0075 = Monthly % rate expressed as a decimal.

t = 7yrs * 12mo/yr = 84 Months=Length of loan.

Pt=(50000*0.0075*84)/(1-(1.0075)^-84) =

$67,574.13.

Monthly Payments=67574.13 / 84=$804.45

Year Monthly Int. Prin. Bal.

6. $804.45 74.87 729.68

Year: 6.

Monthly: 804.45.

Interest: 74.87.

Principal: 729.68.

BALANCE: $9,253.20.

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