payment for the 3-year plan:
i = .12/12 = .01
n = 36
payment = x
x ( 1 - 1.01^-36 )/.01 = 5000
x (30.10750504) = 5000
x = 166.07
balance owing at the end of 1 year
= 5000(1.01)^12 - 166.07(1.01^12 - 1)/.01
= 3527.92
Can you take if from there ?
Susan Borrowed $5000. The term of the loan is 12% compouned monthly for 3 years.
what is the monthly payments?
How much must she pay at the end of of 1 year to pay the balance off?
How much did she save in interest by paying the loan off in one year??
1 answer
1 answer