To finance the remodeling of her kitchen, Rosa borrowed $26400 on an 18-month home equity loan. She signed a promissory note bearing interest at 12 and 1/2%. What total amount did Rosa pay in the due date?

28875

Explanation:

Rosa borrowed $26400 for remodeling of her kitchen on home equity loan.

Promissory note bearing interest of 12 and 1/2% or 12.5% or 0.125.

Total amount Roma has to pay in the due which means the end of 18 months.

1st Principal amount is $26400 = P 2nd Rate of interest is 12 and 1/5 %. = R 3rd Time days/month/week taken to pay the total amount. = T P = $26400, R = 12.5 % and time is 18 months

Adjustments:-

R =.125 T = 18/24 (calculated on a monthly basis, 1 year has 12 months) PRT = Interest on a due date I = 26400 *.125 * 0.75 = 2475 2475 interest charged for 18 months Total amount Roma has to pay in the due date? 26400 + 2475 = 28875