document.write( "Question 1195215: In return for a loan, with money worth 7% compounded semiannually, a man promises to pay $600 at the end of each 6 months for 8 years. (b) Find his remaining liability just after his 6th payment. \n" ); document.write( "
Algebra.Com's Answer #829456 by Theo(13342)\"\" \"About 
You can put this solution on YOUR website!
here's my excel spreadsheet.
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\n" ); document.write( "you can see that at the end of the 6th semi-annual time period, the remaining balance was $4,989.96 after the payment was made.
\n" ); document.write( "that's your solution.
\n" ); document.write( "the procedure for calculating the remaining balance at the end of each time period is:
\n" ); document.write( "remaining balance from the previous time period is multiplied by 1.035 to get the remaining balance in the current time period before payment is made.
\n" ); document.write( "payment is then subtracted to get the remaining balance in the current time period after the payment is made.
\n" ); document.write( "at the end of time period 5, the remaining balance was $5,400.93 after the payment was made.
\n" ); document.write( "multiply that by 1.035 to get 5589.96 at the end of time period 6 before the payment is made.
\n" ); document.write( "make the 600 payment to get 4989.96 at the end of time period 6 after the payment is made.
\n" ); document.write( "you first needed to find the present value of the loan for 600 dollar payment at the end of each semi-annual period for 16 semi-annual periods.
\n" ); document.write( "that present value = 7256.47 was the amount of the loan.
\n" ); document.write( "the interest rate used was 7% / 2 = 3.5% per semi-annual time period.
\n" ); document.write( "here are the results from the calculator at that gives you the present value of the payments which is the amount of the loan.
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\n" ); document.write( "inputs are everything except pv.
\n" ); document.write( "output is pv.
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