Question

Faye borrowed $9600 at 8% per anum compound interest.
(a) Calculate the interest on the loan for the first year.
At the end of the last year,she repaid $4368.
(b) How much did she still owe at the beginning of the year?
(c)Calculate the interest on the remaining balance for the second year.​

Answer 1

Answer:

(a) $768

Step-by-step explanation:

Faye borrowed $9600 at 8% interest compounded per annum.

Solution for question (a):

Amount accumulated is given by;

A = P(1 + $\frac{r}{n}$$)^{nt}$

Where A is the amount, P is the pricipal, r is the rate, n is the number of times in a year, and t is the number of years.

So the amount after one year was;

A = 9600(1 + $\frac{8}{1 * 100}$$)^{1 * 1}$ = 9600 × 1.08 = 10368

Interest = Amount - Principal = $10368 - $9600 = $768

Answer 2

a.  The interest on the loan for the first year is $768.

b. The amount she still owe at the beginning of the year is $6,000.

c. The interest on the remaining balance for the second year is $480.

a. Interest on loan:

Interest on loan=$9600 × 8%

Interest on loan=$768

b. Amount owed

Amount owed=$9,600+$768-$4368

Amount owed=$6,000

c. Interest on remaining balance :

Interest on remaining balance=$6,000×8%

Interest on remaining balance=$480

Inconclusion the interest is $768, amount owe is $6,000 and Interest on remaining balance is $480.

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