first we have to find the payment.
let it be p
i = .07/12 = .005833.. ----> I stored in my calculator for increased accuracy
PV = 220,000
n = 360
p( 1 - 1.0058333...^-360)/.0058333... = 220000
I got p = $1463.67
Value of debt if no payments had been made after 87 periods
= 220000(1.0058333...)^87 = 364910.84
value of 87 payments at that time
= 1463.67( 1.0058333..^87 - 1)/.0058333..
= 165273.50
outstanding balance = 364,910.84 - 165,273.50
= 199,637.34
Since you did not show any of your steps, I have no way of knowing where you went wrong.
Jeremy takes out a 30-year mortgage of 220000 dollars at an annual interest rate of 7 percent compounded monthly, with the first payment due in one month. How much does he owe on the loan immediately after the 87th payment?
I have tried 204311.1024, but not successful
1 answer
0 answers