Who ever can answer questions 8,9, and 10 will get 34 pts

Mathematics

1 answer:

k0ka [10]3 years ago

8 0

Answer:

I am looking for this anwer to

Step-by-step explanation:

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Your company has just taken out a 1-year installment loan for $72,500 at a nominal rate of 20.0% but with equal end-of-month pay

Mariulka [41]

Answer:

100% of the 2nd monthly payment go toward the repayment of principal.

Step-by-step explanation:

The loan taken is the Principal which is mentioned as $72,500 with interest at a nominal rate of 20%. Firstly, it is important to understand that nominal rate means non-compounding rate. Simply put will be a "one-time charged" rate on the loan. Since this is given as 20% of the Principal. It is calculated thus: $\frac{20}{100}$ × $\frac{72,500}{1}$ = $14,500. So the interest on the loan is $14,500. Added to the Principal the total amount to be paid back by the company becomes: $72,500 + $14,500 = $87,000. To pay back this amount at equal end-of-month installments in 1 year (12 months), we divide the total amount by 12. i.e $\frac{87000}{12}$ = $7250. This means, the monthly payment will be $7,250. Since the monthly payment pays only 10% of the initial principal $72,500. By the second month only 20% of the Principal would have been paid. So all of the monthly payment will go towards repaying the principal