Question

A business owes $8000 on a loan. Every month, the business pays 12of the amount remaining on the loan. How much will the business pay in the sixth month? enter your answer in the box.

Answer 1

$458.46

Step-by-step explanation:

In the first month, the business will pay 12% of the remaining amount on the loan, which is $8000 * 12/100 = $<<8000*12/100=960>>960.

In the second month, the business will pay 12% of the remaining amount on the loan, which is ($8000 - $960) * 12/100 = $7104 * 12/100 = $<<7104*12/100=853.28>>853.28.

This pattern continues, so in the sixth month, the business will pay 12% of the remaining amount on the loan, which is ($8000 - $960 - $853.28 - $756.96 - $661.94 - $578.84) * 12/100 = $3820.52 * 12/100 = $<<3820.52*12/100=458.46>>458.46.

Therefore, the business will pay $458.46 in the sixth month.