Question

If a loan was repaid by monthly payments of $9230.00 in 7.5 years at 6.15% compounded annually, how much interest was paid?

Answer 1

P = Po(1+r)^n.

T = 7.5yr. * 12mo./yr. = 90 mo.

P = 9230/mo. * 90mo. = $830,700.

r = 0.0615.

n = 1comp./yr. * 7.5yrs. = 7.5 compounding periods.

Po = ?.

I = P-Po.