How much did she repay?

Math Central

Quandaries & Queries

Question from Margie:

Jackie borrowed $30,000 from her bank at 9.75 Interest for 5 years and six months. When the loan was paid in full, how much money had Jackie paid the bank?

Hi Margie.

It really depends on two important things:

1) How often is she making payments on the loan? Are the payments all the same size?

2) How is the interest compounded? It might be "simple interest" which doesn't compound, or it might be compound interest, compounded daily, monthly or yearly.

Stephen La Rocque.

Math Central is supported by the University of Regina and The Pacific Institute for the Mathematical Sciences.