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majarm majarm
wrote...
Posts: 406
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6 years ago
You borrowed the amount indicated in the Balance after payment column of the following schedule from your friendly credit union. You agreed to repay the loan in monthly payments equal to   of the original loan, including interest due and principal. Interest is charged at a rate of 12.2% per annum computed on the monthly balance.
   Repayment Schedule

Payment
number   Balance
before payment   
Amount
paid   
Interest
paid   
Principal
repaid   Balance
after
payment
0               12.00.00
1               
2               
3               
4               
5               
6               
Totals               

Required: Complete the repayment schedule (this includes totalling of the Payment, Interest paid and Principal repaid columns to check the accuracy of your work).

a) What is the loan balance after the third payment?
b) What is the total amount needed to repay the loan?
Textbook 
Contemporary Business Mathematics with Canadian Applications

Contemporary Business Mathematics with Canadian Applications


Edition: 11th
Authors:
Read 69 times
1 Reply

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Replies
wrote...
6 years ago
Repayment Schedule
Payment
number   Balance
before payment   
Amount
paid   
Interest
paid   
Principal
repaid   Balance
after
payment
0               12.00.00
1   1200.00     240.00   12.20     227.80    972.20
2     972.20     240.00     9.88    230.1     742.08
3    742.08     240.00     7.54     232.46    509.62
4    509.62     240.00     5.18     234.82    274.80
5    274.80     240.00     2.79     237.21      37.59
6      37.59       37.97      .38       37.59   
Totals      1237.97   37.97   1200.00   

a) $509.62
b) $1237.97
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