Question

Find the monthly payment and estimate the remaining balance. Assume interest is on the unpaid balance.

5​-year computer loan for ​$2483 at 6.7​%; remaining balance after 2 years.

The monthly payment is ​$

Answer 1

1.Information provided:

Present price= $2,483

Time= 5 years*12 = 60 months

Monthly interest rate= 6.7%/12 = 0.5583%

The monthly payment is calculated by entering the below in a financial calculator:

PV= -2,483

N= 60

I/Y= 0.5583

Press the CPT key and PMT to compute the amount of monthly payment.

The value obtained is 48.82.

Therefore, the monthly payment is $48.82.

2.Remaining balance after 2 years:

= $2,483 - ($48.82*2*12)

= $2,483 - $1,171.68

= $1,311.32.