SOLUTION: A company amortizes a $75,000 loan, at 4.3% interest, with quarterly payments of $2316.83 for 10 years. What is the balance of the loan after 5 years? (Round your final answer to t

Algebra ->  Finite-and-infinite-sets -> SOLUTION: A company amortizes a $75,000 loan, at 4.3% interest, with quarterly payments of $2316.83 for 10 years. What is the balance of the loan after 5 years? (Round your final answer to t      Log On


   

Question 1131688: A company amortizes a $75,000 loan, at 4.3% interest, with quarterly payments of $2316.83 for 10 years. What is the balance of the loan after 5 years? (Round your final answer to two decimal places.)
Answer by Theo(13342) About Me  (Show Source):
You can put this solution on YOUR website!
use a financial calculator to do the following:

present value = 0
future value = 0
interest rate per quarter = 4.3% / 4 = 1.075%
number of quarters = 5 * 4 = 20
payments are 2316.83 at the end of each quarter.
solve for present value.
that's the remaining balance on the loan.

the present value is equal to 41,494.45.

you can use the following calculator at https://arachnoid.com/finance/ to get the same result.

here's a display of the results using that calculator.

$$$

thqt's the remaining balance on the loan after 5 years.


this can be seen by looking at the following excel spreadsheet printout.

$$$