Question

A loan of $19,221 was repaid at the end of 17 months. What size repayment check (principal and interest) was written, if a 9.7% annual rate of interest was charged? The amount of the repayment check was $ 45447.53). (Round to two decimal places.)

Answer 1

The amount of the repayment check was $21862.29.

Explanation:

Principal P = $19221

Rate r = 9.7% = 0.097

Time t = 17 months =
`17/12= 1.41667` years

`I= p* r* t`

`I= 19221*0.097*1.41667` = $2641.29

The loan repayment is the original principal plus the interest.

=
`19221+2641.29=21862.29` dollars

The amount of the repayment check was $21862.29.