If a loan was repaid by monthly payments of $715.00 in seven years at 9.12%, compounded monthly, how much interest was paid?
fv=[(1+i)^n -1]
i
i = 9.12/12 = .76 = .0076 n=7X12=84
715[(1+.0076)^84 -1
.0076
=715[0.888884232]
.0076
=715. x 116.9584517
=83625.29295
84 x 715.= 60060
83625.29-60060.00 = 23565.29
Therefor the amount of $23565.29 is Interest
fv=[(1+i)^n -1]
i
i = 9.12/12 = .76 = .0076 n=7X12=84
715[(1+.0076)^84 -1
.0076
=715[0.888884232]
.0076
=715. x 116.9584517
=83625.29295
84 x 715.= 60060
83625.29-60060.00 = 23565.29
Therefor the amount of $23565.29 is Interest