Jim borrowed $12,500 at 6% per annum compound interest. At the end of the first year, he repaid $5,500.

calculate the interest on the loan for the first year

Question

Mathematics

Brady

10 May, 16:35

Jim borrowed $12,500 at 6% per annum compound interest. At the end of the first year, he repaid $5,500.

calculate the interest on the loan for the first year

+5

Answers (1)

Know the Answer?

Baron Blevins · Answer 1

The amount of repayment AT THE END of the first year does not reduce the interest on the loan for the first year.

The interest of 6% per annum compounded monthly

= 12500*[ (1 + (0.06/12)) ^12-1]

= 770.97 (to the nearest cent)

Jim borrowed $12,500 at 6% per annum compound interest. At the end of the first year, he repaid $5,500.calculate the interest on the loan for the first year

Jim borrowed $12,500 at 6% per annum compound interest. At the end of the first year, he repaid $5,500.

calculate the interest on the loan for the first year