Assume Jackie is currentlypaying monthly loan payments of 27

Assume Jackie is currentlypaying monthly loan payments of $2,700 on a loan charging 9%, compounded monthly over a 20 year periodl Jackie still owes 8 years (96 payments) on the loan. The total amount she currently owes on the loan is closest to...?

Solution

It has been provided that Jackie still owes 8 years on the loan.

This means she still have to made 96 monthly payments.

Each monthly loan payment = $2,700

Calculate total amount she currently owes on the loan -

Total amount she currently owes = Monthly loan payment * Number of monthly payments still to be made

                                                = $2,700 * 96

                                                = $259,200

Thus, the total amount she currently owes is $259,200.