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sweet-ann [11.9K]
4 years ago
13

Solve for the amount of monthly interest that is owed on an interest-only loan based on the following facts: Loan amount $115,00

0, annual interest rate of 7%?
767?
671?
575?
7,475?
Mathematics
1 answer:
aev [14]4 years ago
6 0

The annual interest owed is

... 7% × $115,000 ≈ $8050


The monthly interest owed is 1/12 that amount.

... (1/12) × $8050 ≈ $671


_____

Some calculators are able to use 7% as a factor; others require you use the decimal equivalent, 0.07.

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