Ask Question
9 July, 23:06

Marques owes 32 more payments on a loan that was originally a $20,000 5-year 6% apr loan with monthly payments. how much is his outstanding principal balance?

+4
Answers (1)
  1. 9 July, 23:51
    0
    Calculate the value, A, of the original loan.

    A = 20000 * (1 + 0.06/12) ⁶⁰ = $26,977.00

    Calculate the monthly payment

    p = 26977/60 = $449.62

    After 32 payments, the remaining value of the loan is

    26977 - 32*449.62 = $12,589.27

    The number of remaining payments is 60-32 = 28.

    If x = the outstanding principal balance, then

    x * (1 + 0.06/12) ²⁸ = 12589.27

    1.15x = 12.589.27

    x = 10947.19

    Answer: The outstanding principal balance is $10,947.19
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Marques owes 32 more payments on a loan that was originally a $20,000 5-year 6% apr loan with monthly payments. how much is his outstanding ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers