Asked by Leticia
bill and laura borrowed $15 000 at 6 per annum compounded monthly for 30 years to purchase a home. Their monthly payment is determined to be $899.63.
Find a recursive formula for their balance after each monthly payment has been made.
Determine Bill and Laura's balance after the first payment.
Find a recursive formula for their balance after each monthly payment has been made.
Determine Bill and Laura's balance after the first payment.
Answers
Answered by
Henry
r = (6%/12)/100% = 0.005 = Monthly % rate expressed as a decimal.
I = 0.005 * 150000 = $750.00 = Int. for
1st month.
---Payments---Interest.-Prin.--Bal.
1. $899.33----750.00---149.33-149850.67
2. $899.33----749.25---150.08-149700.59
3. $899.33----748.50---150.83-149549.77
NOTE: The int. is always 0.005 times the
unpaid Bal.
I = 0.005 * 150000 = $750.00 = Int. for
1st month.
---Payments---Interest.-Prin.--Bal.
1. $899.33----750.00---149.33-149850.67
2. $899.33----749.25---150.08-149700.59
3. $899.33----748.50---150.83-149549.77
NOTE: The int. is always 0.005 times the
unpaid Bal.
Answered by
Kimberly
Nice job
There are no AI answers yet. The ability to request AI answers is coming soon!
Submit Your Answer
We prioritize human answers over AI answers.
If you are human, and you can answer this question, please submit your answer.