Question

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?

Answer 1

@angle can you double check me on this?

using A = P(1 + r)^t we get

15000(1 + 0.1)^10 as the total amount needed to be paid

dividing that quantity by 10 should get the total amount paid each time

then multiplying by 8 should give the amount still owed since he's only paid two

Answer 2

I feel like this is missing something... yes that should give you how much he still owes... but the question is asking how much Principle is left.
what you calculated is how much total is there left to pay (which includes interest)

Answer 3

Oh. Hm.

Answer 4

ok
this is more difficult than either of us thought

here is a similar example in regards to uniform payments on a compounding interest: https://pinoybix.org/2017/04/what-does-mr-ayala-pay-each-month.html

here is the closest equation I could find that matches the above linked example:

here is the compounding interest factors table that we should be using: https://global.oup.com/us/companion.websites/9780199778126/pdf/Appendix_C_CITables.pdf

a clear answer without a solution to this main problem is located here: https://www.coursehero.com/file/p3rf074/A-P699939-B-P629293-C-P622239-D-P692293-189-An-investment-of-P350000-is-made/

Answer 5

so.

I have not even explicitly learned any of this. The above are the resources I could find, but I fear that if I try to show you myself, I am bound to make a mistake and confuse us all.

sorry