A construction company takes a loan of $1,531,000 to cover the cost of a new grader. If the interest rate is 6.75% APR, and paym

Question

4 years ago

12

ents are made monthly for five years, what percentage of the outstanding principal does the company pay in interest each month?

1 answer:

kicyunya [14] · Answer 1 · 2021-12-07T08:01:06+03:00

5 0

Answer:

0.56%

Explanation:

the annual interest rate is 6.75%, so divide it by 12 to find the monthly interest rate

6.75% / 12 = 0.56%