Thursday

August 21, 2014

August 21, 2014

Posted by **tracy** on Monday, November 5, 2012 at 3:08am.

Answer: The unpaid balance after ten years is $136,641.85

I have the answer but I need help figuring out the formula used and the steps taken to get the answer. Please help.

- math -
**Reiny**, Monday, November 5, 2012 at 8:09amFirst you have to find the payment.

You did not say, but I will assume that the payments are monthly.

let the payment be p

162000 = p( 1 - 1.00525^-360)/.00525

p = 1002.74

unpaid balance after 10 years

= balance if you had paid nothing - amount of the annuity for 10 years

= 162000(1.00525)^120 - 1002.74(1.00525^120 - 1)/.00525

= 136641.30

could be round-off error on their part, I kept max number of decimals using calculator's memories.

**Related Questions**

math - The price of a home is $215,000. The Bank requires 20% down payment and ...

math - The price of a home is $120,000. The bank requires a 10% down payment and...

Math - The Robinsons decide they would rather purchase the $85,000 home. Their ...

math - Determine the regular payment amount, rounded to the nearest dollar. The ...

math - Determine the regular payment amount, rounded to the nearest dollar. The ...

math - Determine the regular payment amount, rounded to the nearest dollar. The ...

Math - The price of a home is $185,000. A down payment of 10% is required with ...

MORTGAGE - Find the monthly payment for the loan. (Round your answer to the ...

ALGEBRA - Determine the down payment and the amount to be financed for each home...

Math - The price of a small cabin is $40,000. The bank requires a 5% down ...