Question

Derek the contractor took out a loan to purchase lumber forone of his projects. He ended up 5328.85 in interestover an 11 month period it theaterestrate on the loan was9.5% how much dhe end up spending on lumber?What was the principal amount of the loan?

Answer 1

Monthly payment×(Number of months$-$ Loan) =Interest

=>Monthly payment×n$-$ Loan=328.85

=>$Loan×\frac {(\frac {R} {12} )} {(1-{1} {(1+\frac {R} {12} )^n)}} ×n-Loan=328.85$

$=P×\frac {(\frac {9.5} {12} )} {(1-{1} {(1+\frac {9.5} {12} )^{11} )}} ×11-1=328.85$

Principal Amount =6833.36