Asked by MathHelp
A 20 year loan requires semi-annual payments of $1333.28 including interest at 10.75% compounded semi annually. what is the original amount of the loan and what will be the balance of the loan 8.5 years later (just after the scheduled payment?)
Answers
Answered by
Reiny
PV = 1333.28(1 - 1.05375^-40)/.05375
= $21750.00
Balance after 8.5 year
= 21750.00(1.05375)^17 - 1333.28(1.05375^17 - 1/.05375
= $17365.12
check my arithmetic
= $21750.00
Balance after 8.5 year
= 21750.00(1.05375)^17 - 1333.28(1.05375^17 - 1/.05375
= $17365.12
check my arithmetic
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