Question

A 30 -year loan is to be repaid with equal installments at the end of each yeas. The amount of interest paid in the 7 th installment is $168. The amount of interest paid in the 19 th installment is $117. Calculate the amount of interest paid in the 25 th installment. ANSWER =$

Answer 1

Without the interest rate or principal loan amount, we cannot accurately calculate the interest paid on the 25th installment of a loan. The interest typically decreases over the life of the loan, following a trend based on consistent payment amounts.

Step-by-step explanation:

The interest paid on the 25th installment of a 30-year loan is calculated using the pattern observed from the given installments. In a typical loan amortization, the amount of interest decreases with each subsequent payment because the principal balance is reduced with each payment, leading to interest being calculated on a smaller balance. Unfortunately, without the interest rate or the principal amount, we cannot calculate the exact interest. Generally, finding the interest of a particular installment would involve using the loan's amortization schedule or a financial calculator, determining the monthly payment, then applying the interest rate to the remaining balance to find out how much interest is part of the payment.

Using the data given or an amortization schedule, one would generally observe a consistent trend in the decrease of the interest portion over time, which could then be applied to predict the interest payment for the 25th installment.