Question

You have a loan for $1000 at 7.65 APR 100 of the loan is due each month and there is a penalty of 2% on the original amount were not paid If you do not pay anything on that loan during the year and assuming there is no compounding how much will you owe in total

Answer 1

Answer:

Amount = 1000(1 + 0.0765) = 1000 x 1.0765 = 1,076.50

Penalty = 12(0.02 x 1000) = 12(20) = 240

Total amount owed = 1,076.50 + 240 = $1,216.50

Step-by-step explanation: