Cathleen Brooks obtained an 18 month loan of $3,200. The interest rate is 15% Her monthly payment is $199.68. The balance of the

Question

3 years ago

15

loan after 6 payments
is $2,341.45.

a. What is the interest for the first payment?

b. What is the interest for the seventh payment?

1 answer:

tangare [24] · Answer 1 · 2022-12-25T06:39:19+03:00

a. The interest for the first payment is $40.

b. The interest for the seventh payment is $29.27.

<h3>What is interest?</h3>

In financial accounting and management, interest refers to the finance charge for obtaining or giving a loan or credit.

The interest payment or revenue is based on the interest rate applied to the principal or loan balance.

<h3>Data and Calculations:</h3>

Loan = $3,200

Monthly payment = $199.68

Interest rate = 15%

Loan balance after 6 payments = $2,341.45

Interest for the first payment = $40 ($3,200 x 15% x 1/12)

Interest for the seventh payment = $29.27 ($2,341.45 x 15% x 1/12)

Thus, while the interest for the first payment is $40, the interest for the seventh payment is $29.27.

Learn more about interest payment at brainly.com/question/16134508