Remaining Balance on a Loan | CFA Level 1 Exam Question

Remaining Balance on a $100,000 Loan after 10 Years

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Question

What is the remaining balance on a $100,000 loan after making monthly payments of $733.76 for 10 years, if the interest rate is 8% per year, compounded monthly?

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Explanations

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A. B. C. D. E.

Explanation

On the BAII Plus, press 120 N, 8 divide 12 = I/Y, 100000 PV, 733.76 +/- PMT, CPT FV. On the HP12C, press 120 n, 8 ENTER 12 divide i, 100000 PV, 733.76

CHS PMT, FV. The remaining balance will be displayed as a negative number. Make sure the BAII Plus has the P/Y value set to 1.