Question

Don Stone obtained an $8.500 installment loan at 14% for 42 months. The loan's balance after 26 payments is 3.733.55. What is the interest for payment 27?

Answer 1

Given:

The unpaid balance after the 26 payments is $3,733.55.

Therefore, the interest for payment 27 will be

`14\text{ \% of \$3733.55}`

Evaluating

`(14)/(100)*3733.55=0.14*3733.55=522.697\approx522.70(nearest\text{ cent)}`

Hence, the interest for payment 27 is $522.70.