SOLUTION: a man borrows 9000 to buy a house at 9% per yr compound. he repaid 920 at the end of each year. how much does he still owe at the end of 3 years?

Question 1101845: a man borrows 9000 to buy a house at 9% per yr compound.
he repaid 920 at the end of each year.
how much does he still owe at the end of 3 years?
Answer by Theo(13342) (Show Source): You can put this solution on YOUR website!
he borrows 9000 at the beginning of the first year.

at the end of the first year, his remaining balance is 9000 * 1.09 - 920 = 8890.

at the end of the second year, his remaining balance is 8890 * 1.09 - 920 = 8770.1.

at the end of the third year, his remaining balance is 8770.1 * 1.09 - 920 = 8639.409

the loan is paid off between 24 years and 25 years.

the remaining balance for the 25 years is shown below.

$$$

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