Tshiamiso wants to buy a franchise that costs R250 000. He is planning on using R150 000 of his savings and take a loan of the outstanding amount. The loan has to be paid in 5 years’ time and in monthly payments at a fixed interest rate of 17.5% per year, compounded monthly. How much interest will Tshiamiso pay in the 5th mont
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Answer:
Calculate:
Total P+I (A)
Where: A = P(1 + r/n)^(nt)
Principal (P): $
100,000.00
Rate (R): %
annual
17.5
Compound (n): Compounding Monthly (12/Yr)
Time (t in years):
5
Answer:
A = $ 238,376.50
A = P + I where
P (principal) = $ 100,000.00
I (interest) = $ 138,376.50
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