Asked by haneefa etimady on Jun 10, 2024
Verified
The current balance on a loan is $3319.59. If the interest rate on the loan is 5% compounded monthly, how long ago was the $2,870 loan made?
Compounded Monthly
An interest calculation method where interest is added to the principal amount every month, leading to a growth in the investment due to interest on interest.
Current Balance
The total amount of money in an account or owed on a loan at any given moment, including principal, interest, and any fees.
Interest Rate
The proportion of a loan or savings amount that is charged or paid as interest to the borrower or saver.
- Calculate the duration it takes for a loan to reach a specified balance with monthly compounding interest.
Verified Answer
KC
Learning Objectives
- Calculate the duration it takes for a loan to reach a specified balance with monthly compounding interest.