Compound Interest (i got the wrong answer, can someone help)

yoshita

New member
Joined
Feb 9, 2021
Messages
4
Calculate the compound interest for a loan of RM1000 with

i. Interest rate 6% per year 12 times per year

for a period of 30 years.

My solving= 1000(1+0.06/12)^360
= 6022.58

but I checked the actual answer was RM348.85 :(
 

Subhotosh Khan

Super Moderator
Staff member
Joined
Jun 18, 2007
Messages
24,653
Calculate the compound interest for a loan of RM1000 with

i. Interest rate 6% per year 12 times per year

for a period of 30 years.

My solving= 1000(1+0.06/12)^360
= 6022.58

but I checked the actual answer was RM348.85 :(
Your "numerical" calculations are correct for calculating amount due at the end of 30 years.

However, all of it (6022.58) is not interest. Part of it is the original loan.

Please re-check your problem-statement and the answer given.
 
Top