Loan Balance Calculator

Formulas

The formula used in the calculation is:

$\text{loan remaining} = \text{loan} \times (1 + r)^k - \left( \frac{\text{monthly payment} \times ((1 + r)^k - 1)}{r} \right)$

Let's assume the following:

First, convert the annual interest rate to a monthly interest rate:

$r = \frac{5}{100} \div 12 = 0.004167$

Convert the loan term and time passed to months:

$n = 5 \times 12 = 60$

$k = 2 \times 12 = 24$

Calculate the monthly payment:

$\text{monthly payment} = 10,000 \times 0.004167 \times (1 + 0.004167)^{60} \div ((1 + 0.004167)^{60} - 1) \approx 188.71$

Calculate the remaining loan balance:

$\text{loan remaining} = 10,000 \times (1 + 0.004167)^{24} - \left( \frac{188.71 \times ((1 + 0.004167)^{24} - 1)}{0.004167} \right) \approx 6,297$

Therefore, the remaining loan balance is approximately $6,297.