# Question 961df

Apr 5, 2017

The thing is; some of your repayment will reduce the outstanding principle sum at every payment cycle (monthly). This will have a bearing on the total amount paid.

#### Explanation:

$\textcolor{b l u e}{\text{Using compound interest}}$

Just using the information provided, without repayment

For annual calculation cycle:

$P {\left(1 + \frac{x}{100}\right)}^{n}$

$120000(1+6/100)^25 =$515024.486...
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For monthly calculation cycle:

$120000(1+6/(12xx100))^(12xx25) =$535796.3774....#