Question
A man bought a house for 76,000. he made a down payment of 26,000 and agreed to pay 2,500 each year with a interest of 14% on an unpaid balance. His payment at the end of the second year was?
Answers
Reiny
strange question
Are you saying his annual payment is $2500 + the interest?
If so, then ...
Balance now = $50,000
interest at end of 1st year = $7000
payment = 2500 + 7000 = $9500
Balance at end of 1st year = $47,500
interest at end of 2nd year = $6,650
payment at end of 2nd year = 2500 + 6650 = $9150
Are you saying his annual payment is $2500 + the interest?
If so, then ...
Balance now = $50,000
interest at end of 1st year = $7000
payment = 2500 + 7000 = $9500
Balance at end of 1st year = $47,500
interest at end of 2nd year = $6,650
payment at end of 2nd year = 2500 + 6650 = $9150