Question

Calculate the simple interest on a loan of $3500 for a period of 6 months at a yearly rate of 5%. (10 POINTS!!)​

Answer 1

Answer:

$3,799.20

Step-by-step explanation:

We presume your formula is intended to be ...

M = Pm(1 + m)^(na)/((1 + m)^(na) - 1)

where M is the monthly payment, m is the monthly interest rate, n is 12, and a is the number of years.

This formula gives written below:

M = 3500·(.08/12)·(1 + (.08/12))^(12·2)/((1 + (.08/12))^(12·2) -1) ≈ 158.30

The total payback will be the sum of 24 of these payments is written below;

payback = 24×$158.30 = $3,799.20