loan amount = 17500 present value of annuity = payment per period * [ 1 - (1+i)^-n ]/i => monthly payment *[1-(1+10.4%/12)^-39]/10.4%/12 = 17500 => monthly payment = 530.74 remaining balance = PV of remaining paymens = 530.74 * [1-(1+10.4%/12)^-28]/10.4%/12 = 13144.78 Solution loan amount = 17500 present value of annuity = payment per period * [ 1 - (1+i)^-n ]/i => monthly payment *[1-(1+10.4%/12)^-39]/10.4%/12 = 17500 => monthly payment = 530.74 remaining balance = PV of remaining paymens = 530.74 * [1-(1+10.4%/12)^-28]/10.4%/12 = 13144.78.