Mr. Ramirez borrowed P15,000 two years ago. The terms of the loan are 10% interest for 10 years with uniform payments. He just made his second annual payment. How much principal does he still owe?

Question

1018 · Answer

answer is 13,023.52 but i need help with the solution. thanks!

mathmale · Answer

How would you go about finding the amount of the annual payment due?  Look through the formulas presented in this section.

mathmale · Answer

Once you've calculated the first and second payments (which includes figuring out how much of each went to paying interest and how much to reducing principal), subtract the first two principal payments from the original loan amount.