Calculate the equivalent flat rate of interest paid on a $115,00 loan at 12% p.a reducible interest to be repaid over 30 years at $1182,90 per month.
thanks :)
thanks :)
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First find the total repayments
1182,90 x 12 = 14,194.8 (1 year total repayments)
14194.8 x 30 = 425,844 (30 year total repayments)
Then subtract total repayments from initial amount borrowed to find the Interest
425,844 - 115,000 = 310,844 (Interest)
Then divide Interest to get a annual Interest paid per year
310.844/30 = 10361.46 (1 Year of Interest)
Then Divide the 1 year of Interest on the amount borrowed and times by 100
10,361.46/115,000 x 100 = 9.0%
= 9.0% Flat rate of interest paid
1182,90 x 12 = 14,194.8 (1 year total repayments)
14194.8 x 30 = 425,844 (30 year total repayments)
Then subtract total repayments from initial amount borrowed to find the Interest
425,844 - 115,000 = 310,844 (Interest)
Then divide Interest to get a annual Interest paid per year
310.844/30 = 10361.46 (1 Year of Interest)
Then Divide the 1 year of Interest on the amount borrowed and times by 100
10,361.46/115,000 x 100 = 9.0%
= 9.0% Flat rate of interest paid
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taking the commas ( , ) to be representing the decimal point,
you have already paid more than 10 times the loan with the 1st payment !
you have already paid more than 10 times the loan with the 1st payment !