Question

Find the monthly payment and estimate the remaining balance. Assume interest is on the unpaid balance.

4-year

computer loan for

​$2853

at

5.8%;

remaining balance after 2 years.

Answer 1

Information provided:

Present value=  $2,853

Time= 4 years*12= 48 months

Monthly interest rate= 5.6%/12= 0.4833%

The monthly mortgage payment is calculated by entering the below in a financial calculator:

PV= -2,853

N= 48

I/Y= 0.4833

Press the CPT key and PMT to compute the monthly mortgage payment.

The value obtained is 66.74.

Therefore, the monthly payment is $66.74.

Remaining balance after 2 years:

= $2,853 - ($66.74*2*12)

= $2,853 - $1,601.76

= $1,251.24.