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Calculate debt. I need to know the steps.

Mathematics
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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.

Mar 22nd, 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

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