9514 1404 393
Answer:
$6903.47
Step-by-step explanation:
The principal due when there are 6 payments left can be found from the amortization formula.
A = P(r/n)/(1 -(1 +r/n)^(-nt))
where principal P is earning annual interest r compounded n times per year for t years. A is the payment in each of the n time periods.
Using the given information, you have ...
$1220 = P(0.034/2)/(1 -(1 +0.034/2)^(-2(3))) = 0.1767226P
Then the principal P due at the time of interest is ...
P = $1220/0.1757226 ≈ $6903.47
The balance 3 years from the end of the loan is $6903.47.
