Question 1187021
cost is 35000
down payment is 5000
loan amount is 3000
balance will be payments made at the end of each year for 10 years.
interest rate is 13% compounded annually.


use the calculator at <a href = "https://arachnoid.com/finance/index.html" target = "_blank">https://arachnoid.com/finance/index.html</a>


inputs are:


pv = -30000
fv = 0
np = 10
ir - 13%
payment at end of time period


inputs look like this:


<img src = "http://theo.x10hosting.com/2021/110101.jpg" >


output looks like this:


<img src = "http://theo.x10hosting.com/2021/110102.jpg" >


solution is that payments of 5528.69 is made at the end of each year for 10 years.


remaining balance at the end of each year is shown below:


<img src = "http://theo.x10hosting.com/2021/110105.jpg" >


remaining balance from the previous year is multiplied by 1.13 and then the payment of 5528.69 is subtracted to get the remaining balance from the current year.


example:
end of year 0 remaining balance = 30,000
multiply that by 1.13 and subtract 5528.69 from that to get:
end of year 1 remaining balance = 28,371.31.


eoy = end of year
rembal = remaining balance