Question

1.a) If a person borrows​$1,200 and repays the loan by paying $100 per month to reduce the loan and 1% of the unpaid balance each month for the use of the money, what is the total cost of the loan over 12 months?

The total cost of the loan is ​$?

b) find a1 and r for a geometric sequence with the values given below

An=63 n=3 Sn=91

a1=?

Answer 1

Loan amount	loan every month paid	net amount	1% of net amt.
1200	100	1100	11
1111	100	1011	10.11
1021.11	100	921.11	9.21
930.32	100	830.32	8.30
838.62	100	738.62	7.38
746	100	646	6.46
652.46	100	552.46	5.52
557.98	100	457.98	4.57
462.55	100	362.55	3.62
366.17	100	266.17	2.66
268.83	100	168.83	1.68
170.51	100	70.51

So after calculation pending amount is 70.51$ over the loan.

Ans 1.B.)