Marques owes 32 more payments on a loan that was originally a $20,000 5-year 6% apr loan with monthly payments. how much is his outstanding principal balance?

Calculate the value, A, of the original loan.

A = 20000 * (1 + 0.06/12) ⁶⁰ = $26,977.00

Calculate the monthly payment

p = 26977/60 = $449.62

After 32 payments, the remaining value of the loan is

26977 - 32*449.62 = $12,589.27

The number of remaining payments is 60-32 = 28.

If x = the outstanding principal balance, then

x * (1 + 0.06/12) ²⁸ = 12589.27

1.15x = 12.589.27

x = 10947.19

Answer: The outstanding principal balance is $10,947.19