Question

On March 2, 2020, Bob borrows $1325.00 with 11.25% compounded monthly. If simple interest is used for part of an interest conversion period, how much is required to settle the debt on July 29, 2024? $

Answer 1

Bob Borrowed On March 02, 2020.

Loan closed on July 29, 2024

Tenure of the Loans = 04 Years 04 Months 28 Days = 52 Months 28 Days

Loan Amount A=  1325.00

Value of the Loan after 52 Months

Here = i monthly Interest Rate = 11.25% / 12 = 0.009375

n = 52

F = 2152.5248

Now Interest for Remaining 28 Days

I = ( 28/365) * Annual Rate * Amount

= ( 28/365) * 11.25% * 2152.5248

= 18.5766

So Total Amount = F + I = 2152.5248 +   18.5766 = 2171.10

So,   $ 2171.10 required to pay off the Debt (Ans)