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\$50,000 loan at 9% for 7yrs. What would be the unpaid balance at the end of the 6th year?

• Business math -

Pt = (Po*r*t)/(1-(1+r)^-t).

r = (9%/12)/100% = 0.0075 = Monthly % rate expressed as a decimal.

t = 7yrs * 12mo/yr = 84 Months=Length of loan.

Pt=(50000*0.0075*84)/(1-(1.0075)^-84) =
\$67,574.13.

Monthly Payments=67574.13 / 84=\$804.45

Year Monthly Int. Prin. Bal.
6. \$804.45 74.87 729.68

Year: 6.
Monthly: 804.45.
Interest: 74.87.
Principal: 729.68.
BALANCE: \$9,253.20.

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