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GenaCL600 [577]
3 years ago
13

Paul received a 12,000 loan from the bank. The bank charges his 6.99% yearly interest rate. 4 years, how much money does Paul ow

e in interest
Mathematics
2 answers:
Ira Lisetskai [31]3 years ago
8 0

Answer:ggcffdjhfr55757566656677787v  


Step-by-step explanation:


andre [41]3 years ago
5 0
Principal amount = 12,000
Annual interest rate (r) = 6.99% = 0.0699
Time (years) = 4 years
Number of installments (t) = 12*4 = 48 months

Monthly payment, A = P/D

Where,
D= {(1+r/12)^t-1}/{r/12*(1+r/12)^t} = {(1+0.0699/12)^48-1}/{0.0699/12(1+0.0699/12)^48} = 42.47

Therefore, A = 12000/42.47 = 282.59

Total payments after 4 years = 282.59*4*12 = 13,564.17

Interest owed = 13,564.17 - 12,000 = 1,564.17
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