4 year computer loan for $3228 at 6.5% ; remaining balance after 2 years

Question

find the monthly payment and estimate the remaining balance 

Answer 1

We are using compound interest

A = P(1+r/n)^nt

A = final amount 

P = principal amount borrowed=$3228

r = interest rate=.065

n=number of times compounded annually=1

t=time=4 years

 

A= 3228(1+.065/1)¹⁽⁴⁾

= 3228(1.065)⁴

=$4152.71

 

The total to be paid back over the 6 years is $4152.71

The total number of paynents will be 12(4)=48

 

Each monthly payment should be 4152.71/48=$86.51 monthly

 

After two years the remaining balance should be

4152.71-(24)(86.51)=$2076.47