Anjee bought a boat priced at $25000 and paid it off by making equal monthly repayments of $615 over 5 years. Find the annual interest rate that was charged
Anjee bought a boat priced at $25000 and paid it off by making equal monthly repayments of $615 over 5 years. Find the annual interest rate that was charged
if Anjee paid $615 every month, how much did he/she pay in a year? how much in 5 years? to find the total interest, subtract $25,000 from the 5 year total. then you can find out the annual interest and hence it's percentage
Compound
Formula for calculating compound interest:
Where,
P = principal amount (initial investment)
r = annual nominal interest rate (as a decimal)
n = number of times the interest is compounded per year
t = number of years
A = amount after time t
I think the book wants me to use simple interest. Okay and the exact answer in the book is 9.52%