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What is 3.7 percent intrest compounded monthly of 5000 in one year

User ACVM
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1 Answer

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Final answer:

The total amount of interest on a $5000 loan with a 3.7% interest rate compounded monthly in one year is $185.

Step-by-step explanation:

To calculate the total amount of interest, we can use the formula:

Interest = Principal * Rate * Time

In this case, the principal is $5000, the interest rate is 3.7% (which is equivalent to 0.037 as a decimal), and the time is 1 year. Plugging in these values into the formula, we have:

Interest = $5000 * 0.037 * 1 = $185

Therefore, the total amount of interest on a $5000 loan with a 3.7% interest rate compounded monthly in one year is $185.

User Howard Shaw
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