Answered

mr. reyes borrows P 600,000 at 12% compounded annually, agreeing to repay the loan in 15 equal annual payments. how much of the original principal is still unpaid after he has made the 8th payment?

Sagot :

Cyleencerrudoviz
Get the annuity first using P = 600000 i = 0.12 n = 15
P=[tex]A\frac{1-(1+i) ^{-n} }{i} [/tex]
A= P 88 094.54

Then get the P where A = 88 094.54 i=0.12 n=7 because of after 8 payments the remaining payments is 7
P=[tex]A \frac{1-(1+i)^{-n}}{i} [/tex]
P= P 402 042.05