Asked by Abdul Rehman
a loan of 2000 is being amortized over 48 months at a interest rate of 12 peecent compounded monthly, the outstanding loan at the beginning of 36 month is ?
Answers
Answered by
Reiny
i = .12/12 = .01
payment:
p(1.01^48 - 1)/.01 = 2000
p = 32.67
outstanding balance after 35 payments
= 2000(1.01)^35 - 32.67(1.01^35 - 1)/.01
= ....
you do the button pushing
payment:
p(1.01^48 - 1)/.01 = 2000
p = 32.67
outstanding balance after 35 payments
= 2000(1.01)^35 - 32.67(1.01^35 - 1)/.01
= ....
you do the button pushing