Question

A business owes $8000 on a loan. Every month, the business pays 1/2 of the amount remaining on the loan.

Answer 1

Here is the answer to the given problem above. Given that the business owes $8000 on a loan and every month, it pays 1212. So for the first month, the remaining is 6,788. On the second month is 5,576, and on the third month, it is 4,364. In the fourth month, the remaining would be 3,152, and in the fifth month is 1,940. Therefore, on the sixth month, if the business pays 1,212 still, the remaining would be $728 only. Hope this answer helps.