Answer:
The fraction of total interest owed is
The value of it to the nearest tenth is 73.1%
Step-by-step explanation:
Let us solve it using the rule of 78
∵ The loan = 12 month
∵ The numerator is after 6 month
- Substitute n by 1 in each bracket
∴ The numerator = {(1 + 11) + (1 + 10) + (1 + 9) + (1 + 8) + (1 + 7) + (1 + 6)}
∴ The numerator = {12 + 11 + 10 + 9 + 8 + 7}
∴ The numerator = {57}
∴ The numerator of the fraction is 57
∵ The denominator = {(n) + (n + 1) + (n + 2) + .......... + (n + 11)}
- substitute n by 1 in each bracket
∴ The denominator = {1 + 2 + 3 + 4 + 5 + 6 + 7 + 8 + 9 + 10 + 11 + 12}
∴ The denominator = {78}
∴ The denominator of the fraction is 78
The fraction of total interest owed is
Now find the value of the fraction
∵ The fraction =
∴ Its value = 0.7307692308 × 100%
∴ Its value = 73.07692308%
- Round it to the nearest tenth
∴ Its value = 73.1%
The value of it to the nearest tenth is 73.1%