Question

Jack paid off his loan in 10 years. If the amount paid off was $172,598 and annual interest rate was 3.25% compounded monthly. what was the original amount borrowed. Round to whole dollar

Answer 1

$228,692

Explanation:

10 years so 3.25% was added 10 times

3.25(10) = 32.5

32.5 + 100 = 132.5

So Jack paid 132.5% of his loan.

x/172,598 = 132.5/100

172598(132.5) = 22,869,235

22,869,235/100 = 228,692.35

Round it to the nearest dollar and you get 228,692