Question

Find the unpaid balance on the debt. (Round your answer to the nearest cent.)

After 7 years of monthly payments on $160,000 at 5% for 25 years.

Answer 1

Amount of debt (PV) = $160,000

Number of monthly payments (N) = 300{25 years x 12}

Interest rate (i) = 5% /12 = 0.41667% per month

Therefore installment amount (PMT) = ??

Using financial calculator or PMT function in excel,

Installment amount (PMT) = $ 935.34

After 7 years of monthly payments

Number of monthly payments (N) = 216 {18 years x 12}

Interest rate (i) = 5% /12 = 0.41667% per month

Installment amount (PMT) = $ 935.34

Unpaid balance on debt (PV) = ??

Using financial calculator or PV function in excel,

Unpaid balance on debt (PV) = $ 133,043.96

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