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Calculate debt. I need to know the steps.


label Mathematics
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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.

Nov 19th, 2017
school business and finance school finance school calculations

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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Nov 19th, 2017
Nov 19th, 2017
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