The repayment schedule is for a $1,300 loan at 7.5% for 6 months. What is the amount for interest at payment 5?
2 answers:
Answer: The answer is $2.77.
Step-by-step explanation: Given that we have to pay the loan of $1300 at interest rate of 7.5% in 6 months. According to the table,
Amount for interest in payment 1 = $8.13,
Amount of interest in payment 2 = $6.79
and
Amount of interest in payment 3 = $5.45.
We can see here that the difference in the amounts to be paid in consecutive months will be same, i.e., the payments will form an arithmetic progression (A.P.).
The common difference = 8.13-6.79=6.79-5.45=1.34.
Therefore, amount of interest in payment 4 = $(5.45-1.34) = $4.11
and amount of interest in payment 5 = $(4.11-1.34) = $2.77.
Please see the attached modified table.
Thus, the answer is $2.77.
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Assuming the equation is:
When fractions involve numeric denominators, the fractions can be removed by multiplying (both sides) by the LCM of the denominators.
Here the denominators are 2 and 10, hence the LCM is 10.
Multiply by 10 on both sides, not forgetting to distribute when multiplying on the right side:
simplify, remember that there are always implied parentheses around numerators and denominators:
Now, distribute, i.e. remove parentheses and distribute:
5x-10x+25=30x+90-10x+140
Simplify
-5x+25=20x+230
transpose terms
25-230=20x+5x
solve
x=-205/25=-41/5
In this particular case, we can also take advantage of the term
(10x-25)/10=5(2x-5)/10=(2x-5)/2 which greatly simplifies the solution process, because the LCM will then be 2 instead of 10.
If we do that, the solution will be:
Multiply by 2 on both sides, not forgetting to distribute when multiplying on the right side:
simplify, remember that there are always implied parentheses around numerators and denominators:
Now, distribute, i.e. remove parentheses and distribute:
Simplify
-x+5=4x+46
solve
5-46=4x+x
-41=5x
x=-41/5
with the same results.