Question

Calculate b1, the balance on the loan after the first month. Give your answer in dollars to the nearest dollar. Do not include commas or the dollar sign in your answer.

Answer 1

Given:

Interest (I)= $716.67

Total amount = $200,000

`R=(716.67*100*12)/(200000*1)`
`R=(860004)/(200000)`
`R=4.3\text{ \%}`

Monthly Payment(d) :

`200000=(d\lbrack1-(1+(r)/(12))^(-25*12)\rbrack)/((r)/(12))`
`200000=(d\lbrack1-(1+(0.043)/(12))^(-25*12)\rbrack)/((0.043)/(12))`
`200000=(d\lbrack1-(1+0.0036)^(-300)\rbrack)/(0.0036)`
`d=\text{ \$1089}`

Balance of the loan amount after one month:

`b_1=200000-1089+716.67`
`b_1=199627.67`

Balance amount after the first month is $199628