A loan, amortized over 7 years, is repaid by making payments of $1,600 at the end of every month. If the interest rate is 3.25% compounded semi-annually, what was the loan principal? $21,954.46 (X) Round to the nearest cent

Functions and Change: A Modeling Approach to College Algebra (MindTap Course List)
6th Edition
ISBN:9781337111348
Author:Bruce Crauder, Benny Evans, Alan Noell
Publisher:Bruce Crauder, Benny Evans, Alan Noell
ChapterP: Prologue: Calculator Arithmetic
Section: Chapter Questions
Problem 2TU: If the annual percentage rate is 8% and the interest is compounded monthly, what is the amount owed...
icon
Related questions
Question
How is this wrong ?
A loan, amortized over 7 years, is repaid by making payments of $1,600 at the end of
every month. If the interest rate is 3.25% compounded semi-annually, what was the
loan principal?
$21,954.46 (X)
Round to the nearest cent
Transcribed Image Text:A loan, amortized over 7 years, is repaid by making payments of $1,600 at the end of every month. If the interest rate is 3.25% compounded semi-annually, what was the loan principal? $21,954.46 (X) Round to the nearest cent
Expert Solution
steps

Step by step

Solved in 3 steps with 3 images

Blurred answer
Recommended textbooks for you
Functions and Change: A Modeling Approach to Coll…
Functions and Change: A Modeling Approach to Coll…
Algebra
ISBN:
9781337111348
Author:
Bruce Crauder, Benny Evans, Alan Noell
Publisher:
Cengage Learning