Compute the amount you must pay for the remainder of loan

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Reference no: EM131835169

1. "You receive a loan for $7,529 where the APR is 7.4%, compounded monthly. You make a payment of $583.08 on this loan every 6 months (i.e., 2 payments per year), which will enable you pay off the loan in eactly 9 years. Immediately after making your regular payment at the end of 3 years, you desire to pay the remainder of the loan in a single payment. Compute the amount you must pay for the remainder of the loan."

2. "Ms. Jones wants to buy a new car for $16,000. She will make a down payment of $8,000. She would like to borrow the remainder from a bank at an interest rate of 9.2% compounded monthly. She agrees to pay off the loan monthly for a period of 2.25 years. Assume that Ms. Jones has made 13 payments and wants to figure out the balance remaining immediately after the 13th payment. Determine the remaining balance.

Reference no: EM131835169

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