Answer:
The loan balance at the end of 3 years is $11,626.26.
Explanation:
Prepare an Amortization Table to determine the loan balance at end of year 3
First, enter the following data in Financial Calculator to find the PMT, payment per month:
Pv = $21,000
r = 7.2%
n = 6 × 12 = 72
P/yr = 12
Fv = $0
PMT = ? - $360.0493
Thus the payment PMT per month is $360.0493.
Year 3
The following are balances extracted from Amortization schedule for Year 3.
Note : 36 months would have expired at end of year 3.
Principle = $ 3,619.94
Interest = $1,060.70
Balance = $11,626.26
Conclusion :
The loan balance at the end of 3 years is $11,626.26
