Question

Brendon Walsh wants to borrow $30,000 from the bank. The interest rate is 6% and the term is for 5 years. What is the yearly payment amount? $360 $1,800 $6,360 $18,000

Answer 1

30000 ×5×6/100 =9000
so for 1 year
9000/5 =1800$

Answer 2

Given:

Amount = $ 30000

Years = 5

Interest = 6 %

To find:

Amount to be paid every year.

Solution:

Total amount = Amount * Years * Interest / 100

Substituting,

We get,

30000 * 5 * 6 / 100

Total amount = $ 9000

Hence, For one year,

9000 / 5

$ 1800

The answer is $ 1800