Question

You borrowed $20,000 one year ago. The loan terms are: 5-year loan with APR of 24% compounded monthly. There are 3 questions to answer for this problem. In your answers, do not use the $ sign, use comma to separate thousands, and round to the nearest dollar.

1. What is the monthly payment for this loan?

2. What is the loan balance today?

3. Today, you decide you want to pay off the loan in 20 months rather than the remaining life of the loan. How much more do you have to add to your monthly payment in order to accomplish this goal

Answer 1

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

? v u 1x 07-20 ENG 23-02-2020 13 AP968 - AK AL AN AO AP AQ AR ASA 20000 24% AM LOAN AMOUNT RATE YEARS MONTHLY RATE NO OF MONTHS 2.0000% r 60 n 959 960 961 962 963 964 965 966 967 968 PVA = 10000 = 10000 = MONTHLY PAYMENT PMT* (1/r)*(1-(1/(1+r)^n)) PMT*(1/0.02)*(1-(1/(1+0.02))^60)) PMT*34.76088668 575.36 ANSWER 1 969 970 971 972 973 AFTER 1 YEAR NO OF MONTHS LEFT LOAN BALANCE = PV = LOAN BALANCE = PV = LOAN BALANCE = PV = LOAN BALANCE = PV = 48 PMT* (1/r)*(1-(1/(1+r)^n)) PMT*(1/0.02)*(1-(1/(1+0.02))^48)) 575.36*30.67311957 17648.07 974 975 976 ANSWER 2 977 978 979 980 981 LOAN TO BE PAID OFF IN 20 MONTHS PVA = PMT* (1/)*(1-(1/(1+r)^n)) 17648.07 = PMT*(1/0.02)*(1-(1/(1+0.02))^20)) 17648.07 = PMT*16.35143334 PMT = 1079.30 ANSWER 3 AMOUNT TO BE ADDED = 503.94 [1079.30-575.36] ... pv, tv, annuity CAP STRU VALUE PM, PMT loan with points LOCK BOX DILUTION DOLLAR COST AVG EXPO 982 NPER APR CPI ear FVA S2 pva ... :