Guess the right payment

In this exercise, you have been provided a 1-year, $20,000 loan at a rate of approximately 2.92%.

However; when you tried entering in a $2,200 monthly payment, it provided a closing balance of -$2,826! For all loans, you know that the ending balance needs to be zero and that the payment needs to be the same every month.

Try picking a number which will bring the closing balance to as close to zero as possible.

• If your closing balance is negative, your guess is too high.
• If your closing balance is positive, your guess is too low.