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John takes out a loan for $8100 at 10% interest compounded monthly and is making payments of $90 a month. Calculate his remaining balance after 30 months

User Nageen
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1 Answer

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The remaining balance after 30 months of monthly payments of $90 is $7,336.72.

The remaining balance after 30 months is the future value of the loan.

We can compute the future value using an online finance calculator.

N (# of periods) = 30 months

I/Y (Interest per year) = 10%

PV (Present Value) = $8,100

PMT (Periodic Payment) = $-90

Results:

FV (Future Value) = $7,336.72

The sum of all periodic payments = $2,700.00

Total Interest = $1,936.72

Thus, the FV after 30 months is $7,336.72.

User Cobus Kruger
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