Interest Problem (1 Viewer)

[lookoutastroboy]

Hi,

I've got this easy maths problem that has a different answer to mine. I was wondering if anyone could tell me if I am wrong or not?

The question is:
A loan of $50000 is paid off by paying 6% reducible interest. Annual repayments of $6000 are paid at the end of each year.

a) how much interest is paid altogether?

well i did:

($50000+(0.06 x $50000)) - $6000 = $47000
($47000+(0.06 x $47000)) - $6000 = $43280
($43280+(0.06 x $43280)) - $6000 = $40449.20

so i got the interest by adding together the (0.06x$50000)+(0.06x$47000)+(0.06x$43280) = $8416.8, however the answer says: $8449.20.

is my answer wrong or the book wrong (p.s. i had done a similar question before and i had got the question right)






thanks in advance,
lookoutastroboy

 

[Drongoski]

Hi,

I've got this easy maths problem that has a different answer to mine. I was wondering if anyone could tell me if I am wrong or not?

The question is:
A loan of $50000 is paid off by paying 6% reducible interest. Annual repayments of $6000 are paid at the end of each year.

a) how much interest is paid altogether?

well i did:

($50000+(0.06 x $50000)) - $6000 = $47000
($47000+(0.06 x $47000)) - $6000 = $43280
($43280+(0.06 x $43280)) - $6000 = $40449.20

so i got the interest by adding together the (0.06x$50000)+(0.06x$47000)+(0.06x$43280) = $8416.8, however the answer says: $8449.20.

is my answer wrong or the book wrong (p.s. i had done a similar question before and i had got the question right)






thanks in advance,
lookoutastroboy

Maybe I misunderstand the problem. By my calculation, it takes 11.89566 .. years (about 12 payments) to pay off the loan. Therefore, roughly, 12 payments = $72 000; therefore interest paid = $22 000 !

According to your workings, at the 3rd payment amount of $40449.20 is still owing; you need to keep paying until the amount still owing is zero. So I don't understand the approx $8400 figure.

 

[lpodnano]

You add all the repayments: $6000 x3= $18000
Then you do $50 000- $40449.20= $9550.80
Then you do $18000-9550.80 = $8449.20

 

[Timothy.Siu]

Hi,

I've got this easy maths problem that has a different answer to mine. I was wondering if anyone could tell me if I am wrong or not?

The question is:
A loan of $50000 is paid off by paying 6% reducible interest. Annual repayments of $6000 are paid at the end of each year.

a) how much interest is paid altogether?

well i did:

($50000+(0.06 x $50000)) - $6000 = $47000
($47000+(0.06 x $47000)) - $6000 = $43280
($43280+(0.06 x $43280)) - $6000 = $40449.20

so i got the interest by adding together the (0.06x$50000)+(0.06x$47000)+(0.06x$43280) = $8416.8, however the answer says: $8449.20.

is my answer wrong or the book wrong (p.s. i had done a similar question before and i had got the question right)


thanks in advance,
lookoutastroboy

well u have $40449.20 to pay off,
to find the interest u can add how much was paid, which is 3x$6000 to the amount u have to pay off wich is $40449.20 and subtract $50000 from it to find the interest