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Math

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If Ginny took out a loan for 21,000 in 8/2011 at 6.5% and wants to pay off in 9/2013, and has been making monthly payments of $239.00 how much will she be charged to pay it all? Please help. Thanks

  • Math - ,

    In short, you want to know the outstanding balance after making 24 payments.

    rate = .065/12 = .00541666...

    Value of her $21,000 if she had made no payments:
    = 21000(1.00541666..)^24 = 23907.00

    Amount of 24 payments of 239
    = 239( 1.005416666..^24 - 1)/.005416666..
    = 6107.91

    so the balance = 23907.00 - 6107.91 = $17,799.10

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