P = (Po*r*t)/(1-(1+r)^-t).
Po = $50,000 = Initial loan.
r = (9%/12) / 100% = 0.0075 = Monthly %
rate.
t = 12Mo/yr * 7yrs = 84 Mo.
Plugged the above values into the given Eq and get: P = $67,574.13.
Monthly Payment = 67,574.13/84Mo=$804.45
Payment--Int.--Principal.--Balance.
1.804.45--375.---429.45------49570.55.
2.804.45--371.78--432.67-----49137.88.
12.804.45--338.21--466.24----44628.62.
What is the unpaid balance of the business loan of 50,000 with interest rate of 9% compounded monthly for7 years, after the firt year of payments?
1 answer