Question

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Consider a loan for $100,000 to be repaid in equal installments at the end of each...

  1. Consider a loan for $100,000 to be repaid in equal installments at the end of each of the next 5 years. The interest rate is 7% compounded annually. What is the remaining balance of the loan after 2 years?

    $63,456

    $24,389

    $64,005

    $75,611

    $51,222

Solutions

Expert Solution

Ans is $ 64,005

Calculations-

Here,
Fv is the future value of loan
rate is the periodic interest rate
nper is no. of periods
pmt is the periodic payments
Pv is the present value of loan
type = 0 if the amount is paid at the end of the year ,1 if it is paid at the beginning.

Please upvote if the answer is helpful.In case of doubt,do comment.Thanks.

jeff jeffy answered 1 year ago
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