Someone please help me im going to attach my question below because its to much !

- anonymous

Someone please help me im going to attach my question below because its to much !

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- katieb

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- anonymous

##### 1 Attachment

- anonymous

http://cs.selu.edu/~rbyrd/math/regular/

- anonymous

Whats this for ?

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## More answers

- anonymous

I can't read your file, can you send under .pdf file?

- anonymous

Yes i will

- anonymous

You find that a small business loan in the amount of 50,000 is the amount you need to purchase the restaurant location. After researching banks to find the best interest rate, you find that banks for small businesses offer the best interest rate of 9% interest that compounds monthly for 7 years.
What is the monthly payment for this loan?
Show the formula that you used and the values used for each variable to calculate the monthly payment.
What is the unpaid balance of the loan at the end of the 1st year?
Show the formula that you used and the values used for each variable to calculate the unpaid balance at the end of the 1st year.
What is the unpaid balance at the end of the 6th year? Show the formula that you used and the values used for each variable to calculate the unpaid balance at the end of the 6th year.

- anonymous

What formula are you learning for monthly payment?

- anonymous

Im just in Mathematics of Finance it was just a question we had i really dont know

- anonymous

monthly = P * r/12 / [ 1 - ( 1 + r/12 ) ^-m ]
Does it look familiar to you?

- anonymous

compound interest formula

- anonymous

With compound interest we get accumulate amount!

- anonymous

Here we're looking for monthly payment for loan!

- anonymous

@kira3 check the formula?

- anonymous

Im sorry yes it does

- anonymous

nvm then...
@Chlorophyll you good at economics?

- anonymous

Monthly payment
= ( $50,000 * .07/12 ) / [ 1- ( 1 + .07/12) ^-84 = $804.45

- anonymous

First year pymt: 12 months * $804.45 = $9,653.45

- anonymous

Ok , so will the formula be the same as the one you showed me above ?

- anonymous

Yep!

- anonymous

Ok , could you re post it please?

- anonymous

Unpaid balance: $50,000 - $9,653.45 = $40,346.55

- anonymous

monthly pymt = P * r/12 / [ 1 - ( 1 + r/12 ) ^-m ]

- anonymous

Ok

- anonymous

I'll check to make sure the same formula applied for 6 months balanced!

- anonymous

Ok thanks

- anonymous

WHAT IS THE ANSWER TO QUESTION 5

- anonymous

Since now unpaid balance is reduced:
Monthly pymt = ( $40,346.55 * .07/12 ) / [ 1- ( 1 + .07/12) ^-72 ]

- anonymous

somehow my calculator got overflowed, just don't know why?

- anonymous

monthly pymt = $687.87

- anonymous

OK im sorry t bother you like this but could you post the answers as one because thier just all over the place

- anonymous

5 yrs * 12 months * $687.87 = $41, 272

- anonymous

Unpaid pymt at the end of 6 yrs:
$40,346.55 - $41, 272 = -925.45 overpayment

- anonymous

All you do copy and paste into your MS words !

- anonymous

Ha ! Ok Thanks So Much

- anonymous

I dont think you answered this one could you tell me what it is ?
Show the formula that you used and the values used for each variable to calculate the unpaid balance at the end of the 1st year.

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