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Question 1183321: After making thirtieth payment of $565.08 on your car loan, you wanted to find out how much is left of your original 6 years loan at 6.1% compounded monthly of $34,000.00. What is the amount of the remaining balance of your car loan?
Answer by Theo(13342)   (Show Source):
You can put this solution on YOUR website! you can use the following financial calculator.
https://arachnoid.com/finance/index.html
your inputs to this calculator will be as shown below:
the monthly interest rate is 6.1 / 12 = .508333333....
the number of months remaining on the loan is 72 - 13 = 59.
the payment at the end of each month is 565.08.
once you click on pv, your output from this calculator will give you a present value of 28,742.04 as shown below.
that is the remaining balance on your loan.
the remaining balance on the loan after 13 months is 28,742.04, based on that calculator and the assumptions used.
i used excel to do month by month calculations and the result was that the remaining balance on the loan after 13 months was 28,742.33.
both methods are accurate to the nearest dollar, but not to the nearest penny.
the primary reason for this is that the remaining balance on the originaal loan at the end of 72 months is equal to -0.39 rather than 0, as it should be.
the reason for that is that the payment reuired is equal to 565.0844627 and not 565.08.
bottom line is that rounding the payment to the nearest penny can throw off the calculations of the remaining balance by a few pennies.
try remaining balance of 28742.04.
if that's no good, try 28742.33.
if it's neither one, let me know what the answer needs to be and i'll try to figure out why it's that, and not the choices i gave you.
if you only have to round your answer off to the nearest dollar, you should be good either way.
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