A $15,000 debt is to be amortized in 12 equal semiannual payments at an annual interest rate of 11% on the unpaid balance. Construct an amortization table to determine the unpaid balance after two payments have been made. Round values in the table to the nearest cent.

Question

anonymous · Answer

does anyone know how to do these problems? I have two more.

anonymous · Answer

:/

anonymous · Answer

cannt u just use the same formula from ur last question?

anonymous · Answer

no, its different. i tried using that one.

anonymous · Answer

http://www.pine-grove.com/online-calculators/remaining-balance-calculator.htm i found this calculator but I don't know exactly what to put in

abb0t · Answer

The formula for calculating the payment amount is: $A = P\frac{ (r(1+r)^n) }{ ((1+r)^n)-1 }$
where: 
A = payment Amount per period 
P = initial Principal (loan amount) 
r = interest rate per period 
n = total number of payments or periods

anonymous · Answer

how do I find the unpaid balance after calculating the payment amount?

anonymous · Answer

I got 2310.41, does anyone know what to do next?

anonymous · Answer

@abb0t  is 2310.41 the unpaid balance?

jim_thompson5910 · Answer

The interest rate per period is 

r = 0.11/2 = 0.055

There are 
n = 12
payments total

and you're borrowing
L = 15000
dollars

-------------------------------------------------------

Plug all of this into the formula below

P = L(r(1 + r)^12)/((1 + r)^12 - 1)

P = 15000(0.055(1 + 0.055)^12)/((1 + 0.055)^12 - 1)

P = 1740.43846787421

P = 1740.44


So that's the monthly payment

jim_thompson5910 · Answer

that should give you enough info to find the remaining balance after 2 payments have been made

anonymous · Answer

11519.12?

jim_thompson5910 · Answer

this is what I get

jim_thompson5910 · Answer

after using this calculator http://www.pine-grove.com/online-calculators/remaining-balance-calculator.htm

anonymous · Answer

okay, I got my attempted answer by multiplying 11519 by 2 and subtracting from 15000.

jim_thompson5910 · Answer

how did you get 11519

jim_thompson5910 · Answer

and that seems awfully high for a payment

anonymous · Answer

i didnt pass the skills test so it doesnt tell me which answers i got wrong

jim_thompson5910 · Answer

oh i'm sry to hear that

probably got this one wrong and the one before it wrong...hmm idk