In: Finance
Sherry borrows $10,000 to purchase a car. The loan
contract specified a rate of 6%, compounded monthly. The
amortization period was set at 8 years, with payments made monthly.
What would be Sherry’s loan balance after 15
months?
The answer is $8,735, but I would like to know the steps to get the answer.
First, in a financial calculator, Find for PMT,
Punch in: I/Y=6%/12 =0.500% ,N= 8*12 =96, PV=10000
PMT will be 131.41