Suppose you borrowed $50,000 at a rate of 8.5% and must repay it in 5 equal installments at the end of each of the next 5 years.How much would you still owe at the end of the first year,after you have made the first payment?
A) $31,171.28
B) $41,146.10
C) $40,730.48
D) $41,561.71
E) $45,302.27

Question

Quizplus · Accepted Answer

To find the remaining balance after the first payment, calculate the annual payment using the annuity formula and then subtract the principal portion of the first payment from the initial loan amount. The remaining balance is $41,561.71.

Suppose You Borrowed $50,000 at a Rate of 8