Algebra CTU
posted by Vicki on .
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?

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
PaymentInt.Principal.Balance.
1.804.45375.429.4549570.55.
2.804.45371.78432.6749137.88.
12.804.45338.21466.2444628.62.