A loan of $ 7250 was repaid at the end of 8 months. What size repayment check was written, if a 9% annual rate of interest was charged?
1 Answer
May 6, 2018
$7685.00
Explanation:
Principal P=$7250
Rate r=9%=0.09/yr
Time t=8 months=8/12= 0.66666667 yr
Interest = Principal * rate * time
The loan repayment is the original Principal plus the interest.