Find the unpaid balance on the debt. (Round your answer to the nearest cent.)

After 6 years of monthly payments on $190,000 at 3% for 25 years.

unpaid balance is $156439.86

Step-by-step explanation:

present value = $190000

rate = 3% monthly = 3/12 = 0.25 % = 0.0025

time = 25 year = 25 * 12 300

to find out

the unpaid balance

solution

first we calculate monthly payment

payment = principal (1 - (1+r) ^ (-t) / r)

and we put all value here

190000 = principal (1 - (1+0.0025) ^ (-300) / 0.0025)

principal = 190000 / (1 - (1+0.0025) ^ (-300) / 0.0025)

principal = 901

so after 6 year unpaid is

present value = principal (1 - (1+r) ^ (-t) / r)

put here principal 901 and rate 0.0025 and time 300 - (year)

time = 300 - (6*12) = 300 - 96 = 228

payment = 901 (1 - (1+0.0025) ^ (-228) / 0.0025)

payment = 901 (713.63)

so unpaid balance is $156439.86