Repaymeents series and sequence question? (1 Viewer)

[girlworld_club]

A loan of $6000 over 5 years at 15% p.a interest charged monthly is paid back in 5 annual installments.
a) what is the amount of each installment?
b) how much is paid back altogether?

please show full working thanks

 

[Shadowdude]

what are you getting stuck on

these questions take some time to answer...

 

[Peeik]

Do you have answers to them? I have an answer but it seems dodgy and unrealistic.

 

[Peeik]

Nonetheless here is my solution to part (a). Part (b) is very simple, it is just 2R-$6000; assuming my answer for part (a) is correct.

 

[RealiseNothing]

Nonetheless here is my solution to part (a). Part (b) is very simple, it is just 2R-$6000; assuming my answer for part (a) is correct.

You have to divide the interest rate by 12 since you are going from months to years. ie

 

[Peeik]

You have to divide the interest rate by 12 since you are going from months to years. ie

Ahhh YESS....thanks RealiseNothing, I knew my answer at the end seemed unrealistic. But hopefully the steps I did were correct despite that boo boo.