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

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 $

Solutions

Expert Solution

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.

jeff jeffy answered 1 year ago

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