Question

A woman borrows $6,000 at 9% compounded monthly, which is to be amortized over 3 years in equal monthly payments. for tax purposes, she needs to know the amount of interest paid during each year of the loan. find the interest paid during the first year, the second year, and the third year of the loan. [hint: find the unpaid balance after 12 payments and after 24 payments.

Answer 1

434.37 per year. 1,303.11 total interest