Answer to Question #207725 in Financial Math for aditya

Question #207725

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?

1
Expert's answer
2021-06-17T11:35:59-0400

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


=>Monthly payment×n- Loan=328.85


=>Loan×(R12)(11(1+R12)n)×nLoan=328.85Loan×\frac {(\frac {R} {12} )} {(1-{1} {(1+\frac {R} {12} )^n)}} ×n-Loan=328.85


=P×(9.512)(11(1+9.512)11)×111=328.85=P×\frac {(\frac {9.5} {12} )} {(1-{1} {(1+\frac {9.5} {12} )^{11} )}} ×11-1=328.85


Principal Amount =6833.36


Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

No comments. Be the first!

Leave a comment