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Sherry borrows $10,000 to purchase a car. The loan contract specified a rate of 6%, compounded...

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Finance

Sherry borrows $10,000 to purchase a car. The loancontract specified a rate of 6%, compounded monthly. Theamortization period was set at 8 years, with payments made monthly.What would be Sherry’s loan balance after 15months?

  1. $1,904
  2. $5,621
  3. $8,029
  4. $8,735

The answer is $8,735, but I would like to know the steps to getthe answer.

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Transcribed Image Text

Sherry borrows $10,000 to purchase a car. The loancontract specified a rate of 6%, compounded monthly. Theamortization period was set at 8 years, with payments made monthly.What would be Sherry’s loan balance after 15months?$1,904$5,621$8,029$8,735The answer is $8,735, but I would like to know the steps to getthe answer.

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