Question

Myrtle took out a 3-year loan for 2050$ at a computer retailer to be paid back with monthly payments at 12% apr compounded monthly. If the loan offers no payments for the first 5 months about how much in total will myrtle pay in interest for the loan?

Answer 1

Answer:

466.27$ APEX

Step-by-step explanation:

Answer 2

Answer:

We have ; p = 2050

r = $12/12/100=0.01$

n = $3\times12=36$

But we will take $36-5=31$

EMI formula is :

$\frac{p\times r\times(1+r)^{n}}{(1+r)^{n}-1}$

Substituting values in the formula we get;

$\frac{2050\times0.01\times(1+0.01)^{31}}{(1+0.01)^{31}-1}$

= $\frac{2050\times0.01\times(1.01)^{31}}{(1.01)^{31}-1}$

= $77.24

Now for further working you can see the sheet attached.

Total interest paid for the loan = $446.76

Download xlsx