Math
posted by Leticia on .
bill and laura borrowed $15 000 at 6 per annum compounded monthly for 30 years to purchase a home. Their monthly payment is determined to be $899.63.
Find a recursive formula for their balance after each monthly payment has been made.
Determine Bill and Laura's balance after the first payment.

r = (6%/12)/100% = 0.005 = Monthly % rate expressed as a decimal.
I = 0.005 * 150000 = $750.00 = Int. for
1st month.
PaymentsInterest.Prin.Bal.
1. $899.33750.00149.33149850.67
2. $899.33749.25150.08149700.59
3. $899.33748.50150.83149549.77
NOTE: The int. is always 0.005 times the
unpaid Bal. 
Nice job