A home improvement loan is to be repaid by equal monthly payments for six years. The interest rate is 5.4% compounded monthly and the amount borrowed is $33,500. How much will the borrower still owe after four years?

Question

Quizplus · Accepted Answer

The borrower will still owe $12,389 after four years. This can be calculated using the formula for the remaining balance of an amortizing loan, which takes into account the total loan amount, the interest rate, the total number of payments, and the number of payments already made.

A Home Improvement Loan Is to Be Repaid by Equal