Step 1 Answer Principle amount = $100 Interest rate =12% Time = 12 months Step 2 $100.00 at 12% interest with12 monthly payments Total Payments: $106.63 Total Interest: $6.63 Monthly payment = ($106.63 /12) Monthly payment = $8.88 That's the answer - but what formula did you use to get the total interest at $6.63???
Step 1 Answer Principle amount = $100 Interest rate =12% Time = 12 months Step 2 $100.00 at 12% interest with12 monthly payments Total Payments: $106.63 Total Interest: $6.63 Monthly payment = ($106.63 /12) Monthly payment = $8.88 That's the answer - but what formula did you use to get the total interest at $6.63???
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
Step 1
Answer
Principle amount = $100
Interest rate =12%
Time = 12 months
Step 2
$100.00 at 12% interest with12 monthly payments
Total Payments: $106.63 Total Interest: $6.63
Monthly payment = ($106.63 /12)
Monthly payment = $8.88
That's the answer - but what formula did you use to get the total interest at $6.63???
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