Answer: The loan balance after 70 months will be $ 366184.45
Explanation:
r = 0.059/12
Present Value (Pv) = 400000
n = 30 x 12 = 360
Monthly Payments = rPv/(1 - (1+r)^-n)
Monthly Repayments = (0.059/12) x 400000/(1 - (1+0.059/12)^-360)
Monthly Repayments = 1966.66664/0.828926661 = 2372.5460074
Monthly Repayments = 2372.55
Loan Balance = PV(1+r)^n - P((1+r)^n - 1)/r
= 400000(1+0.059/12)^70 - 2372.55((1+0.059/12)^360 -1)/0.059/12
= 563849.79539 - 197665.34102 = 366184.4543
The loan balance after 70 months will be $ 366184.45
