Question

John took out a loan to do some repairs on his home. He borrowed

$25,000 for 6 years. The bank compounded the interest monthly and
charged a 6.5% interest rate. How much interest did he have to pay to
borrow the money? Round to the nearest cent. *

Answer 1

25000 ÷ 72mo. = 347.20 x 6.5% = $225.70