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A construction company takes a loan of $1,531,000 to cover the cost of a new grader. If the interest rate is 6.75% APR, and payments are made monthly for five years, what percentage of the outstanding
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A construction company takes a loan of $1,531,000 to cover the cost of a new grader. If the interest rate is 6.75% APR, and payments are made monthly for five years, what percentage of the outstanding principal does the company pay in interest each month?

User Maxime Lorant
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1 Answer

1 vote

Answer:

0.56%

Step-by-step explanation:

the annual interest rate is 6.75%, so divide it by 12 to find the monthly interest rate

6.75% / 12 = 0.56%

User Manfcas
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5.1k points
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