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Find the loan repayment amount on a 43-month personal loan of €100,000 at an interest rate of 9% compounded monthly.

a) €2,675.13
b) €2,852.46
c) €3,021.75
d) €3,194.63

User Mayid
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1 Answer

3 votes

Final answer:

The loan repayment amount on a 43-month personal loan of €100,000 at an interest rate of 9% compounded monthly is approximately €3,194.63.

Step-by-step explanation:

To find the loan repayment amount on a 43-month personal loan of €100,000 at an interest rate of 9% compounded monthly, we can use the formula for calculating the monthly payment on a loan:

Monthly Payment = P * r * (1+r)^n / ((1+r)^n - 1)

where P is the principal loan amount, r is the monthly interest rate, and n is the number of months. Let's plug in the values:

Monthly Payment = 100,000 * (0.09/12) * (1+(0.09/12))^43 / ((1+(0.09/12))^43 - 1)

After evaluating this expression, we find that the loan repayment amount is approximately €3,194.63.

Therefore, the correct answar is d) €3,194.63

User Vincent Agami
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