Answer:
Step 1: Find the previous balance.
After 8 payments, the remaining balance on the loan is $2,237.27. Therefore, the previous balance would be the balance before the 8th payment.
Total number of payments = 24
Number of payments already made = 8
Number of payments remaining = 24 - 8 = 16
Using the given monthly payment, we can find the balance before the 8th payment:
PV = PMT x [(1 - (1 + r/n)^-n*t)/(r/n)]
where PV is the present value or previous balance, PMT is the monthly payment, r is the annual interest rate, n is the number of times the interest is compounded per year, and t is the time period in years.
Plugging in the given values, we get:
PV = $147.37 x [(1 - (1 + 0.075/12)^(-12*2))/(0.075/12)]
PV = $3,090.60
Therefore, the previous balance was $3,090.60.
Step 2: Find the interest for the 9th month.
We know that the balance at the end of the 8th month was $2,237.27. We can use this and the given interest rate to find the interest for the 9th month.
Interest = Balance x (Annual interest rate/12)
Interest = $2,237.27 x (0.075/12)
Interest = $13.99
Step 3: Find the final payment.
To find the final payment, we need to add the interest for the 9th month to the monthly payment and subtract it from the remaining balance.
Final payment = Remaining balance + Interest for 9th month - Monthly payment
Final payment = $2,237.27 + $13.99 - $147.37
Final payment = $2,103.89
Therefore, the final payment is $2,103.89.
Hope This Helps!