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mart [117]
2 years ago
13

To finance the remodeling of her kitchen, Rosa borrowed $26400 on an 18-month home equity loan. She signed a promissory note bea

ring interest at 12 and 1/2%. What total amount did Rosa pay in the due date?
Business
1 answer:
natulia [17]2 years ago
6 0

28875

Explanation:

Rosa borrowed $26400 for remodeling of her kitchen on home equity loan.

Promissory note bearing interest of 12 and 1/2% or 12.5% or 0.125.

Total amount Roma has to pay in the due which means the end of <em>18 months.</em>

  • 1st Principal amount is $26400 = P
  • 2nd Rate of interest is 12 and 1/5 %. = R
  • 3rd Time days/month/week taken to pay the total amount. =T
  • P= $26400 , R = 12.5 % and time is 18 months

<u>Adjustments:-</u>

  • R = .125 T = 18/24 (calculated on a monthly basis, 1 year has 12 months)
  • PRT = Interest on a due date
  • I = 26400 * .125 * 0.75 = 2475
  • 2475 interest charged for 18 months
  • Total amount Roma has to pay in the due date ?
  • 26400 + 2475 = 28875

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