Asked by stephanie stang on May 18, 2024
Verified
How much longer will it take monthly payments of $1,000 to pay off a $100,000 loan if the monthly compounded rate of interest on the loan is 5.25% instead of 4.875%?
Compounded Rate
Refers to the process by which interest is earned on both the initial principal and the interest previously earned.
Monthly Payments
Regular payments made once per month, often used in the context of loans, leases, or other financial agreements.
- Understand the impact of different interest rates on the term and total cost of loans.
Verified Answer
JJ
Learning Objectives
- Understand the impact of different interest rates on the term and total cost of loans.
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