You are planning to borrow OMR 5,000. You can repay the loan in 40 monthly payments of OMR 147.50 each or 36 monthly payments of OMR 161.34 each. You decide to take the 40-month loan. During each of the first 36 months you make the loan payment and place the difference between the two payments (OMR 13.84) into an investment account earning 10% APR. Beginning with the 37th payment you will withdraw money from the investment account to make your payments. How much money will remain in the investment account after your loan is repaid?

asked by Sara

4 years ago

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1 answer

Here is a hint:
Take 10% of an investment, that should be a good first step.

answered by Anonymous

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You are planning to borrow OMR 5,000. You can repay the loan in 40 monthly payments of OMR 147.50 each or 36 monthly payments of OMR 161.34 each. You decide to take the 40-month loan. During each of the first 36 months you make the loan payment and place the difference between the two payments (OMR 13.84) into an investment account earning 10% APR. Beginning with the 37th payment you will withdraw money from the investment account to make your payments. How much money will remain in the investment account after your loan is repaid?

1 answer

Here is a hint:
Take 10% of an investment, that should be a good first step.

Anonymous · Answer

Here is a hint: Take 10% of an investment, that should be a good first step.