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March 27, 2017

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

  • Business math - ,

    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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