Business math

posted by .

$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.

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. math

    You have just graduated from college and landed your first big job. You have always dreamed of being a homeowner, and after carefully shopping for your dream home, you find one that you would like to purchase at a cost of $250,000. …
  2. math

    unpaid balance at the end of the 10th year?
  3. math

    You have just graduated from college and landed your first big job. You have always dreamed of being a homeowner, and after carefully shopping for your dream home, you find one that you would like to purchase at a cost of $250,000. …
  4. Algebra

    You find that a small business loan in the amount of 50,000 is the amount you need to purchase the restaurant location. After researching banks to find the best interest rate, you find that banks for small businesses offer the best …
  5. Algebra

    You find that a small business loan in the amount of 50,000 is the amount you need to purchase the restaurant location. After researching banks to find the best interest rate, you find that banks for small businesses offer the best …
  6. Finance

    Your firm is considering the following three alternative bank loans for $1,000,000: A) 10 percent loan paid at year end with no compensating balance. B) 9 % laon paid at year end with a 20% compesating balance. C)6% loan that is discounted …
  7. Math 141

    You find that a small business loan in the amount of 50,000 is the amount you need to purchase the restaurant location. After researching banks to find the best interest rate, you find that banks for small businesses offer the best …
  8. CTU

    Part IV: You find that a small business loan in the amount of 50,000 is the amount you need to purchase the restaurant location. After researching banks to find the best interest rate, you find that banks for small businesses offer …
  9. algebra

    a small business loan in the amount of 50,000 need to interest rate of 9% that compounds monthly for 7 years. What is the payment for 7 years, need formula for this. And what is the balance of the loan at the end of the 1st year?
  10. algebra

    my scenario, to start a small business you will need a loan of $50.000 to purchase the restaurant. The bank interest rate 9% that compounds monthly for 7 years. What is the monthly payment for this loan, what is the fomula that you …

More Similar Questions