Step-by-step explanation:
Let P be price after t year . From the formula of compounding
P = 9 (1.015)^t
Taking log to the base e on both sides
ln P = ln 9 + t ln 1.015
= (2.197 + .0149t )
P = e^{(2.197+.0149t)}
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)
Answer is X=2
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