Question

Question 1 (1 point)

Answer 1

Answer:

The description for the problem is listed throughout the section below on explanations.

Step-by-step explanation:

The given values are:

The amount of bank loan = $22,000

Interest rate = 7.99%

Pays monthly = $700

So, the principal amount decreases by 700 per month.

Now,

The principal amount at the end of the $m^{th}$ month = (22000 - 700 m)

Then,

The interest paid at the end of 1 year:

⇒ $(22000)0.0799+(22000-700)0.0799+...+(22000-700(11))0.0799$

On simplifying the above equation, we get

⇒ $0.0799[12(22000)-\frac{11\times 12}{2}\times 700]$

⇒ $0.0799[264000-11\times 6\times 700]$

⇒ $0.0799[264000-46200]$

⇒ $$17402.22$

Therefore interest could be measured correctly at the end of each year, likewise.

⇒ $(2200-700m)R+(22000-700(m+1))R+...+(22000-700(m+11))R$

⇒ $R[12\times 22000-700[12m+\frac{11\times 12}{2}]]$

⇒ $R[264000-700[12m+\frac{11\times 12}{2}]]$

⇒ $R[263300(12m+66)]$

R : interest rate