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