Suppose you borrow $25,000 at an interest rate of 6.2% compounded monthly. if your monthly payment is $231.49. what is the balance of the loan at the end of 2 months?

Balance of the loan at the end of 2 months = $252357.32

Step-by-step explanation:

Principal = $25000

Interest = 6.2% , Monthly Payment = 231.49

n = number of times the interest is compounded in a year

⇒ n = 1 ( because it is mentioned the rate is compounded is monthly )

Time = 1 month = 0.083 years

Balance of the loan at the end of one month :

Balance of the loan at the end of two months :

Now after monthly payment of $239.31, the Principal becomes :

Principal = Amount after one month - Monthly Payment

              = 251291.67 - 231.49

              = $ 251060.18

Hence , Balance of the loan at the end of 2 months = $252357.32

4 + 5 7/9= 9 7/9

step-by-step explanation: