Question

A bank recently loaned you $15,000 to buy a car. The loan is for five years...

A bank recently loaned you $15,000 to buy a car. The loan is for five years (60 months) and is fully amortized. The nominal rate on the loan is 12 percent, and payments are made at the end of each month. What will be the remaining balance on the loan after you make the 30th payment?

a.   $ 8,611.17

b.   $ 8,363.62

c.   $14,515.50

d.   $ 8,637.38

e.   $ 7,599.03

I NEED HELP doing this on the BA II Plus professional calculator please help

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Answer #1
Loan amount 15000
Annual rate = 12%
Monthly rate = 12/12 = 1%
Divide; Annuity PVF at 1% for 60 periods 44.95504
Monthly Payment 333.67
Multiply: Annuity PVF for 30 periods 25.80771
Loan outstanding 8611.259
Answer is a. 8611.17
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