A company currently owes $20,000 to a bank for a loan it took 2 years and...

A company currently owes $20,000 to a bank for a loan it took 2 years and 8 months ago. The interest rate charged on the loan was 5.5% compounded monthly.

a. What was the original principal of the loan?

b. What was the amount of interest charged on the loan?

Solutions

Expert Solution

1.
=20000/(1+5.5%/12)^(12*2+8)=17277.4242819764

2.
=20000-20000/(1+5.5%/12)^(12*2+8)=2722.57571802364

jeff jeffy answered 2 years ago

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