In: Finance
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?
1.
=20000/(1+5.5%/12)^(12*2+8)=17277.4242819764
2.
=20000-20000/(1+5.5%/12)^(12*2+8)=2722.57571802364