The unpaid balance of an installment loan is equal to the present value of the remainingpayments. The unpaid balance, P, is given by the formula below where PMT is the regularpayment amount, r is the annual interest rate, n is the number of payments per year, and t is thenumber of years remaining in the loan. Complete parts a. and b. below.-nt]+n[1₁-(₁₁9]AP= PMT-a. Use the loan payment formula to derive the unpaid balance formula.Explain how to derive the unpaid balance formula. Choose the correct answer below.Multiply both sides of the loan payment formula byThe unpaid balance after three years is $(Round to the nearest dollar as needed.)b. The price of a car is $21,000. You have saved 20% of the price as a down payment. After thedown payment, the balance is financed with a 5-year loan with monthly payments at 9%.Determine the unpaid balance after three years.exampleGet more help .OCT121- 1+tvClear all- ntPCheck answerA

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Answered: The unpaid balance of an installment…

Advanced Engineering Mathematics

10th Edition

ISBN:9780470458365

Author:Erwin Kreyszig

Publisher:Erwin Kreyszig

Chapter2: Second-order Linear Odes

Section: Chapter Questions

Problem 1RQ

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Find the value of the annuity and the interest. Round to the nearest dollar. nt P 1+ n - 1 A P[(1 +r}* - 1] A = A = P = r r nt + - 1 Periodic Deposit: $1000 at the end of each year Rate: 5.5% compounded annually Time: 13 years O A. $18,287; $5,287 B. $16,386; $3,386 C. $36,469; $23,469 D. $3,457; $9,543
bonnie deposits 1800 into a saving account at time 0. the savings account pays simple interest an annual rate of i. clyde deposits 100 into a different saving account at time 0. clyde saving account pays interest at an annual effective rate of i. bonnie and clyde earn the same amount of interest during the 7th year. calculate i
A certain sum of money in simple interest scheme amount to 8,880 in 6 years and 7,920 in 4 years respectively. Find the principal and rate percent. Principal - 6,000; rate - 8% Principal - 6,000; rate-7.5% Principal - 6,300 ; rate - 8% Principal - 6,300; rate-7.5% Find the compound interest on 16,000 at 20% per annum for 9 months compounded quarterly. * 2,522 16,200 17,610 18,433
Toni takes out a 30-year mortgage loan for $146,000. Her fixed annual interest rate is 4.3% compounded monthly. Which equation correctly calculates Toni's monthly mortgage payment? 146,000-0.043 М 12|1-(1+) -12-30 0.043 146,000-0.043 M 12/1-(1+ )"] 0.043 146,000-0.043 M = 12{1-()"] 0.043 146,000-0.043 M -12-30 0.043 12 1-
0.049 With PV = 100,000, i = 12 and n = 276, we are now ready to find the monthly payment PMT, by substituting these known values into the formula. Simplify and round the result to the nearest cent. PMT = PV 1 (1 + i)- 0.049 12 PMT = -276 0.049 1 - 1 + 12 Thus, the monthly payment on a 23-year, $100,000 mortgage at 4.9% per year is $
3% during each of the past 6 years and that a member of COLAS Suppose the cost-of-living index had increased by the EUW Union had been guaranteed an annual increase 3% during each of the past 6 years and that a member e equal to 2% above the increase in the cost-of-living index over that period. What would be the present salary of a union member whose salary 6 years ago was $42,000?
Determine the outstanding principal of the given mortgage. (Assume monthly interest payments and compounding periods.) HINT [See Example 7.] a $100,000, 25-year, 4.3% mortgage after 10 years Step 1 Note that this question asks us to find the outstanding principal, after the first 10 years, on a 25-year, $100,000 mortgage. The present value formula can be used to calculate the outstanding principal on a mortgage, but to use this formula, the monthly payment on the mortgage must be known. To calculate the monthly payment PMT on a mortgage valued at PV dollars for n periods at an interest rate of i per period, use the formula PMT = PV The given mortgage is $100,000, so PV = 100000 The 4.3% annual interest rate as a decimal is 0.043, so the monthly interest rate is i = 12 Step 2 With PV = 100,000, i = If the investment is for 25 years with monthly payments, then the number of pay periods is n = 25. 12 = 300 nearest cent. PMT = PV PMT = = 1 − (1 + i)¯″¸ 100000 0.043 and n = "I 12 544.54…
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2. A loan Lis repaid using increasing payments. The first payment, made at t = 1, is of amount 200, and each subsequent payment increases by a factor of (1.05), with the last payment at t = t= 10, the borrower decides to make an additional payment of X, which allow him to halve the size of the remaining payments (t = 11, ., 20). Determine L and X if the effective interest is 8%. 20. However, at %3D
275 OR is deposited in A Principle of that pays balance func 2.75 interest Compounded yearly Account ot time Lyeardis əsuodsan u tion in responge Bly) = I(1+ %3D a. Find the account balance after 20 months. b. Show by graphing or decreasing. function is in creasing C. be 2275 OR. c After how ma ny years s the account balance will
Find the value of the annuity and the interest. Round to the nearest dollar. nt P[1+ g* -1] 1+ - 1 A A = A = P = nt 1+ Periodic Deposit: $100 at the end of each year Rate: 6% compounded annually Time: 12 years O A. $1,687; $487 O B. $1,497; $297 O C. $316; $884 O D. $3,354; $2,154 acer

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