1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
charle [14.2K]
2 years ago
13

You plan to borrow $36,500 at a 7.7% annual interest rate. The terms require you to amortize the loan with 7 equal end-of-year p

ayments. How much interest would you be paying in Year 2?
Mathematics
1 answer:
erma4kov [3.2K]2 years ago
8 0

The amount of interest you would be paying in Year 2 is: $2,492.62.

<h3>Interest</h3>

First step is to calculate the Equal Monthly Payment

Equal Monthly Payment=P×r×(1+r)^t/(1+r)^t-1

Where:

P=Principal=$36,500

r=Rate=7.7%

t=Time=7 years

Equal Monthly Payment=36,500×0.077×(1+0.077)^7÷(1+0.077)^7-1

Equal Monthly Payment=36,500×0.077×(1.077)^7÷(1.077)^7-1

Equal Monthly Payment=36,500×0.077×1.6807763÷1.6807763-1

Equal Monthly Payment=4,723.82/0.6807763

Equal Monthly Payment=$6,938.875

Second step is to calculate Year 1 Closing balance

Year 1 Closing balance  = Beginning  balance + Interest - EMI Payment

Year 1 Closing balance=  $36,500 +($36,500×7.7%) - $6,938.875

Year 1 Closing balance=  $36,500 + $2,810.5 -$6,938.875

Year 1 Closing balance =   $32,371.625

Third step is to calculate year 2 interest

Year 2 Interest= $32,371.625×7.7%

Year 2 Interest=$2,492.62

Therefore the amount of interest you would be paying in Year 2 is: $2,492.62.

Learn more about interest here:brainly.com/question/15259578

#SPJ1

You might be interested in
When Meriden made a cake she used a recipe calling for 3/4 cup of sugar. She was planning to make a huge cake for a family get-t
soldi70 [24.7K]
Meriden would need 2 1/4 cups of sugar because 3*3/4=2 1/4
8 0
3 years ago
What property is (a•3)x b = b x(a•3) Using algebraic Expressions
Archy [21]

Answer:  Commutative Property of Multiplication

<u>Step-by-step explanation:</u>

Commutative property is when two terms trade places.

(a · 3) × b = b × (a · 3)

Notice that (a · 3) switched places with b

8 0
3 years ago
A rope is 3 meters long what is the length in centimeters of five rope
Dahasolnce [82]

Answer:

1500cm for 5 ropes.

3meter into cm= 300

300×5= 1500

7 0
3 years ago
Read 2 more answers
Anna and Alice share a rectangle bedroom that is 18 feet long and 14 feet wide. they split the room into two halves by placing a
Alja [10]
The area of the whole room = 14 × 18 = 252

Since they divide it by half, divide the are by 2.

252 ÷ 2 = 126

Answer = 126 ft²

Hope this helped☺☺
4 0
3 years ago
Read 2 more answers
0.01L = how many ML????????
jasenka [17]
Your answer would be ten
5 0
3 years ago
Read 2 more answers
Other questions:
  • The length of a rectangular garden is 9 feet longer than its width. if the garden's perimeter is 190 feet, what is the area of t
    5·1 answer
  • The Survey of Study Habits and Attitudes (SSHA) is a psychological test that measures studentsâ study habits and attitude toward
    8·1 answer
  • let x represent the number of hours you read a book and y represent the total number of pages you have to read you already read
    9·1 answer
  • <img src="https://tex.z-dn.net/?f=x%20%2B%20y%20%3D%209%20%2B%202x%20-%203y%20%3D%208" id="TexFormula1" title="x + y = 9 + 2x -
    14·1 answer
  • 0.000701 to a scientific notation
    6·2 answers
  • The regular price of a watch is $32.25. During a sale, the watch was marked 16% off. What was the price of the watch during the
    6·2 answers
  • What is y equal to ?
    13·1 answer
  • Danny got a puppy for his birthday. After one year, the puppy gained 15 pounds and now weighs 52 pounds.
    6·1 answer
  • You can read 20 pages in 45 minutes. how many pages can you read in 1 minute​
    14·1 answer
  • FUNDRAISING A school is raising money by selling calendars for $20 each. Mrs. Hawkins promised a party to whichever of her Engli
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!