To know the Loan Balance, including the current payment, interest and term remaining – Loan balance calculator is used. To know the amount remaining to be repaid by the borrower in a certain time, then Loan Balance formula is used. The banks provides loan with easy repayment option that is called the equated monthly installments. Equated monthly installments are devised in such a way that the borrowers pays back to the lender (banks/financial institutions etc) without being heavy for the pocket and the interests is also taken care of.
Find loan balance formula below,
B = Balance Amount
A = Loan Amount
P = Payment Amount
r = Rate of Interest (compounded)
n = Number of time periods
Question: Find the balance loan after 1 year, when the original loan amount is $10000, payment amount is $ 900 and annual interest rate of 4%?
Given Original loan amount A = 10000B = Balance Amount
A = 10,000
P = 900.00
r = 0.04
n = 01 years
Using the loan formula:
B = $ 2487.10
Hence the balance amount after an year = $ 2487.10