document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1116675>Question 1116675</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Anne borrows &#8203;$4000 and agrees to pay &#8203;$500 plus interest of 2&#8203;% on the unpaid balance each month. Find the payments for the first six months and the remaining debt at the end of that period. What are the first six&#8203; payments, in&#8203; dollars? What is the remaining debt at the end of that period? </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #731610 by </B><A HREF=/tutors/aboutme.mpl?userid=Theo><B>Theo(13342)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Theo><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=Theo><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=731610\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> the number of months required for the loan to be fully paid off is 8.804558331.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "after 6 months:\r<BR>\n" );
document.write( "\n" );
document.write( "the remaining balance on the loan will be 1350.589195.<BR>\n" );
document.write( "the amount of the principal that was already paid will be 2649.410805.<BR>\n" );
document.write( "the interest that was already paid will be 350.5891955.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "i used the texas instruments business analyst II (TIBA2) calculator.<BR>\n" );
document.write( "i also used excel to show the month by month calculations.<BR>\n" );
document.write( "both sources agree.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "in the TIBA2 calculator, i did the following:\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "I/Y = 2<BR>\n" );
document.write( "PV = 4000<BR>\n" );
document.write( "PMT = -500<BR>\n" );
document.write( "FV = 0<BR>\n" );
document.write( "2d PMT (BGN) = END\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "i then had the calculator compute N for me.<BR>\n" );
document.write( "this gave me the number of months required for the loan to be fully paid off.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "to find out the remaining balance at the end of 6 months, i then did the following:\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "2d PV (AMORT)<BR>\n" );
document.write( "calculator asks for P1 which is the start month.<BR>\n" );
document.write( "i entered 1 and then hit ENTER and then hit the down arrow key.<BR>\n" );
document.write( "calculator asks for P2 which is the end month.<BR>\n" );
document.write( "i entered 6 and then hit ENTER and then hit the down arrow key.<BR>\n" );
document.write( "it told me that the remaining balance was 1350.589195.<BR>\n" );
document.write( "i then hit the down arrow key again.<BR>\n" );
document.write( "it told me that the principal paid was 2649.410805<BR>\n" );
document.write( "i then hit the down arrow key again.<BR>\n" );
document.write( "it told me that the interest paid was 350.5891955.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "if you look at the excel values for the end of month 6, you will see that excel agrees with this.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "these are shown below:\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" src = \"http://theo.x10hosting.com/2018/050701.jpg\" alt=\"$$$\" >\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "<BR>\n" );
document.write( "<BR>\n" );
document.write( "<BR>\n" );
document.write( "<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( " </SPAN>\n" );
document.write( "</TD></TR></TABLE>\n" );