Question

A couple who borrow $100,000 for 15 years at 6%, compounded monthly, must make monthly payments of $843.86. (Round your answers to the nearest cent.)

(a) Find their unpaid balance after 1 year.


(b) During that first year, how much interest do they pay?

Answer 1

Answer: Since the couple borrowed 100000 right for 15 years divided 100000 by 15 and add 6 percent at the end and multiply 843.86 by 16 and subtract on what they payed divided by 14 to find one year