Question

Monica took out a 30-year loan for $130,000 at an APR of 8.4%, compounded monthly, and she is making monthly payments of $990.39. What will her balance be with 12 years left on the loan

Answer 1

Answer: $ 40331.781  (Approx)

Step-by-step explanation:

Let Monica pay off $ x in 12 years,

Thus, for 12 years, his present value,  PV  = $ x

Given, APR of the loan =  8.4% = 0.084

Thus, the monthly rate of the loan, r = 0.084/12 = 0.007

The number of period in 12 years, n = 144

And, the monthly payment, P = $ 990.39

Thus, by the formula,

$\frac{r(PV)}{1-(1+r)^{-n}}=P$

$\frac{0.007 x}{1-(1+0.007)^{-144}} = 990.39$

$\frac{0.007 x}{1-0.36623195919}=990.39$

$\frac{0.007 x}{0.6337680408 } = 990.39$

$0.007 x=990.39\times 0.6337680408$

$0.007 x=627.677529937$

$x=89668.2185624$

Thus, He pay off $ 89668.2185624 of the original amount of the loan.

⇒The amount of loan left after 12 years

= 130,000 - 89668.2185624

=40331.7814376  ≈ $ 40331.781

Answer 2

Answer:

$89,668.12 according to A P E X.

Step-by-step explanation:

A P E X