Round to the nearest penny.

Your friend wants to borrow $1,137.45 from you to pay off a credit card that charges a 14.7% APR. You agree to the loan but require your friend to pay you interest of 3.6% APR on the loan and your friend agrees.

Your friend pays you $200.00 at the end of the first month. How much goes toward the principa

1 answer

The monthly interest on the loan is calculated as (14.7% / 12) = 1.225% per month.

The interest on the loan for the first month is $1,137.45 * 1.225% = $13.9230375.

Therefore, the amount that goes toward the principal is $200.00 - $13.9230375 = $186.08.

Rounded to the nearest penny, your friend pays $186.08 toward the principal in the first month.
Similar Questions
  1. Round to the nearest penny.Your friend wants to borrow $1,137.45 from you to pay off a credit card that charges a 14.7% APR. You
    1. answers icon 1 answer
  2. For questions 3 and 4, you will be answering by filling in the blanks.Round to the nearest penny. Your parents allow you to
    1. answers icon 3 answers
  3. For questions 3 and 4, you will be answering by filling in the blanks.Round to the nearest penny. Your friend gives you a gift
    1. answers icon 1 answer
    1. answers icon 1 answer
more similar questions