Jack and Jill borrow $24,000 at 6.3% amoritzed over 5 years to drill a well and...

Jack and Jill borrow $24,000 at 6.3% amoritzed over 5 years to drill a well and renovate their kitchen and bathrooms. Assuming that the monthly principal and interest payments are made as agreed, what is the loan balance at the end of 3 years?

Please include instructions on how to do this with BAII PLUS calculator if possible.

Expert Solution

Calculator
Inputs:
FV	-
PV	24,000.00
Rate (I/Y) per period	0.5250%
Term N payments	60

Output:
PMT	($467.34)

Loan balance with 2 years to maturity:

Calculator
Inputs:
FV	-
PMT	$467.34
Rate (I/Y)	0.525%
Term N	24.00

Output:
PV	10,512.49

Answer is:

10,512.49

please rate.

jeff jeffy answered 2 years ago

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