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A 7% car loan, which is compounded annually, has an interest payment
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24 Feb 2021, 06:30
24 Feb 2021, 06:30
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A 7% car loan, which is compounded annually, has an interest payment of $210 after the first year. What is the principal on the loan?
A. $2,600
B. $2,800
C. $3,000
D. $3,200
E. $3,400
A. $2,600
B. $2,800
C. $3,000
D. $3,200
E. $3,400
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A 7% car loan, which is compounded annually, has an interest payment
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24 Feb 2021, 23:10
24 Feb 2021, 23:10
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GeminiHeat wrote:
A 7% car loan, which is compounded annually, has an interest payment of $210 after the first year. What is the principal on the loan?
A. $2,600
B. $2,800
C. $3,000
D. $3,200
E. $3,400
A. $2,600
B. $2,800
C. $3,000
D. $3,200
E. $3,400
C.I = P [\((1 + \frac{R}{100n})^{nT} - 1\)]
Here,
C.I = $210
R = 7%
n = 1
T = 1
210 = P [\((1 + \frac{7}{100})^{1} - 1\)]
210 = P (0.07)
P = $3000
Hence, option C
gmatclubot
A 7% car loan, which is compounded annually, has an interest payment [#permalink]
24 Feb 2021, 23:10
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