Asked by Anon
A $20,000 loan is to be amortized for 10 years with quarterly payments of $763.55. If the interest rate is 9%, compounded quarterly, what is the unpaid balance immediately after the sixth payment?
Answers
Answered by
Rowan
The formula for an unpaid balance is:
R [1-(1+i)^-(n-k) / i]
In this case:
R = 763.55
i = .09/4 = .0225
n = 10*4 = 40
k = 6
Plug that all into the formula and you have your answer!
R [1-(1+i)^-(n-k) / i]
In this case:
R = 763.55
i = .09/4 = .0225
n = 10*4 = 40
k = 6
Plug that all into the formula and you have your answer!