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

Leonel

Mathematics

29 January, 11:25

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

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Answers (1)

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Rivas · 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