Question

On March 2, 2020, Bob borrows $4025.00 with 12.25% compounded monthly. If simple interest is used for part of an interest conversion period, how much is required to settle the debt on July 27, 2025?

Answer 1

	Amount Required	PV*(1+r)^n
	Here
1	Interest rate p.a.	12.25%
2	No. of years	5.41
3	Number of compoundings per year	12
1/3	Interest rate per month ®	1.02%
2*3	No. of Months (n)	64.92
	Present Value (PV)	4025
	Amount Required	7,784.75
	4025*(1+1.02%)^65
Note:
02-03-20	27-07-25	1973	5.41