Question 585415
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L = 22,000 - 10,000 = 12,000 is the loan amount
i = r/12 = 0.052/12 is the monthly interest rate
n = 24 is the number of months
P = 400 is the monthly payment


B(n) = L*(1+i)^n - P*( (1+i)^n - 1 )/i
B(24) = 12000*(1+0.052/12)^24 - 400*( (1+0.052/12)^24 - 1 )/(0.052/12)
B(24) = 3,218.25965151418
B(24) = 3,218.26


<b><font color=red size=4>Answer: $3,218.26</font></b>


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More Info about the formula used:
<a href="http://financeformulas.net/Remaining_Balance_Formula.html">http://financeformulas.net/Remaining_Balance_Formula.html</a>


Here is a table of the balances
<img src = "https://i.imgur.com/6BC7tmf.png">
The idea is that you compute the compound interest first and then the payment is made afterward.
This process is repeated 24 times to generate the 24 rows.
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