Time remaining:
Calculate debt. I need to know the steps.

label Mathematics
account_circle Unassigned
schedule 1 Day
account_balance_wallet $5

A $15,000 debt is to be amortized in 12 equal semiannual payments at an annual interest rate of 11% on the unpaid balance. Construct an amortization table to determine the unpaid balance after two payments have been made.

Jun 28th, 2017

solution

The interest rate per period is r = 0.11/2 = 0.055 

then There are n = 12 payments total and you're borrowing 

soL = 15000 dollars 

when we Plug all of this into the formula below P = L(r(1 + r)^12)/((1 + r)^12 - 1) 

 P = 15000(0.055(1 + 0.055)^12)/((1 + 0.055)^12 - 1) 

which shows P = 1740.43846787421 P = 1740.44 

So that's the monthly payment

Jun 26th, 2014

Studypool's Notebank makes it easy to buy and sell old notes, study guides, reviews, etc.
Click to visit
The Notebank
...
Jun 28th, 2017
...
Jun 28th, 2017
Jun 29th, 2017
check_circle
Mark as Final Answer
check_circle
Unmark as Final Answer
check_circle
Final Answer

Secure Information

Content will be erased after question is completed.

check_circle
Final Answer