Question

A couple who borrow $80,000 for 20 years at 7.2%, compounded monthly, must make monthly payments of $629.88. (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?

Name: a couple who borrow 80000 for 20 years at 72 compounded monthly must make monthly payments of 62988 round your answers to the nearest cent a find their unpaid balance after 1 year b during t 60809
Uploaded: 2022-11-16T22:49:05-08:00
Duration: 2 min 36 s
Channel: Brian Beasley
Description: a couple who borrow 80000 for 20 years at 72 compounded monthly must make monthly payments of 62988 round your answers to the nearest cent a find their unpaid balance after 1 year b during t 60809

          A couple who borrow $80,000 for 20 years
at 7.2%, compounded monthly, must make monthly payments of
$629.88. (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?

Added by Nathan T.

Calculus: Early Transcendentals

James Stewart 8th Edition

Instant Answer

Solved by Expert Brian Beasley

11/16/2022

Step 1

88 \) (monthly payment), $ i = 0.006 $ (monthly interest rate), $ n = 12 \times 19 = 228 $ (number of payments remaining). Plugging in the values: \[ P = \dfrac{629.88}{0.006} - \dfrac{629.88}{0.006} \left(1 + 0.006\right)^{-228} \] \[ P = 104980 - 7814.96 Show more…

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A couple who borrow $80,000 for 20 years at 7.2%, compounded monthly, must make monthly payments of $629.88. (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?