I need help with this question please..?
Rain Yang Asked: I need help with this question please..?
Emma decides to buy a home entertainment system costing $5000. She takes out a loan from her Credit Union for the full cost of the system. The loan is based on a reducing balance interest rate of 10.5% pa with equal monthly installments for three years.
a.) find the size of each repayment for the loan.
b.)Hence find the total paid for the Entertainment System and the amount of interest paid.
c.) after two years,Emma finds that she is in a position to pay off the loan in full.How much does she still owe the bank after two years?
d.)How much does she save by paying off the loan early?Would you advise Emma to pay off the loan early?
Answers:
a) 5000/36 X 110.5/100 = 153.47
b)153.47 X 36 = 5524.92
c)153.47 X 24 = 3683.28
d)524.92
yes
Got a better answer? Share it below!
Categories: Loan Questions Tags: loan, Mr Richard Success, Rain Yang Asked, Yours Sincerely