Question

A loan of $ 7250 was repaid at the end of 8 months. What size repayment check was written, if a 9% annual rate of interest was charged?

Answer 1

$7685.00

Explanation:

Principal P=$7250
Rate r=9%=0.09/yr
Time t=8 months=8/12= 0.66666667 yr

Interest = Principal * rate * time
`I =Prt`
`I= $7250*0.09/(yr)*0.6666667 yr`

`I=$435`

The loan repayment is the original Principal plus the interest.

`$7250+$435=$7685`