Problem #4: A loan of amount $36960 is to be repaid in payments that each consist of a principal repayment of $840 plus the interest on the previous outstanding balance. What is the total interest paid if the interest per payment period is 2.5%?

Q: alternate answer?

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Q: will you please show solution without excel step by step

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Q: please display your formula used in your work

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Q: hi, can you please show me how to solve this without using excel? thank you

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Q: Can you solve using excel and explain the formulas more in depth?

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Amortized Loans

The term "amortization" refers to spreading the value of a loan or a debt over a series of regular payments or installments comprising of both the principal and interest amount. It generally involves the process where in the value of a loan or an intangible asset is written down over its maturity period.