Janet's home went to Citizens Bank she borrowed 7000 at a rate of 8% the date of the alone was September 20th Janet Hope to repay the alone on January 20th assuming the alone is based on ordinary interest Jenna's will pay back how much interest on January 20th

Question

Mathematics

Janae Proctor

1 December, 11:55

Janet's home went to Citizens Bank she borrowed 7000 at a rate of 8% the date of the alone was September 20th Janet Hope to repay the alone on January 20th assuming the alone is based on ordinary interest Jenna's will pay back how much interest on January 20th

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Answers (1)

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Shyla Mckay · Answer 1

Interest depends a lot on the compounding period.

Since the period is exactly 4 months, we assume

APR=8%

monthly interest=8/12%=0.00666667

Interest due in 4 months

=7000[ (1+0.08/12) ^4-1]

=7000[0.0269345]

=$188.54