Question

jamie borrowed $31,000 to put towards a down payment for a home. Jamie plans to repay the loan in 7 years. The bank offered a 4.1 interest rate compounded quarterly. What is the total amount Jamie will pay the bank?

Answer 1

56,691.00 which would be 21 payments at 4.1 % compounded quarterly.

84 months in 7 years

÷ 4

= 21

21

×4.1 =

26,691 +

31,000 =

56,691