Question

An amount of $25,000 is borrowed for 9 years at 9% interest, compounded annually. If the loan is paid in full at the end of that period, how much must be paid back? Use the calculator provided and round your answer to the nearest dollar.

Answer 1

$36,566

Explanation:

"The calculator provided" will tell you the monthly payment is $338.57, so the 108 payments made over the period of 9 years will total ...

108 × $338.57 = $36,565.56

Rounded to the nearest dollar, the amount is $36,566.