Question

Violet is planning to make 32 semiannual loan payments of $1580 dollars each. If her bank charges an annual interest rate of 3.8%, how much will the loan balance be 8 years from the end the loan? Answer = $ dollars.​

Answer 1

$21,623.70

Explanation:

A suitable financial calculator can compute the beginning balance and the remaining balance for you. The attachments show a TI-Nspire calculator's TVM solver app being used to answer this question.

The first attachment shows the computation of the loan value. It is about $37,624.54.

The second attachment shows the computation of the remaining balance after 16 of the 32 semi-annual payments have been made.

The loan balance 8 years from the end of the loan will be about $21,623.70.