Posted by **Vicki** on Thursday, December 20, 2012 at 1:58pm.

What is the unpaid balance of the business loan of 50,000 with interest rate of 9% compounded monthly for7 years, after the firt year of payments?

- Algebra CTU -
**Henry**, Saturday, December 22, 2012 at 9:43pm
P = (Po*r*t)/(1-(1+r)^-t).

Po = $50,000 = Initial loan.

r = (9%/12) / 100% = 0.0075 = Monthly %

rate.

t = 12Mo/yr * 7yrs = 84 Mo.

Plugged the above values into the given Eq and get: P = $67,574.13.

Monthly Payment = 67,574.13/84Mo=$804.45

Payment--Int.--Principal.--Balance.

1.804.45--375.---429.45------49570.55.

2.804.45--371.78--432.67-----49137.88.

12.804.45--338.21--466.24----44628.62.

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