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A couple who borrow $50,000 for 20 years at 6%, compounded monthly, must make monthly payments...

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Basic Math

A couple who borrow $50,000 for 20 years at 6%, compoundedmonthly, must make monthly payments of $358.22. (Round your answersto the nearest cent.) (a) Find their unpaid balance after 1 year. $(b) During that first year, how much interest do they pay?

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The formula used to calculate the fixed monthly payment P required to fully amortize a loan of L over a term of n months at a monthly interest rate of r is P Lr1 rn1 rn 1    See Answer
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