The size of the monthly repayment k that amortizes a loan of A dollars in N years at an interest rate of r per year, compounded monthly, on the unpaid balance is given by The value of r can be found by performing the iteration A family secured a loan of $360,000 from a bank to finance the purchase of a house. They have agreed to repay the loan in equal monthly installments of $2476 over 25 years. Find the interest rate on this loan. Round the rate to one decimal place.
A)8.7%
B)7.7%
C)6.7%
D)5.7%

Question

The size of the monthly repayment k that amortizes a loan of A dollars in N years at an interest rate of r per year, compounded monthly, on the unpaid balance is given by  The value of r can be found by performing the iteration  A family secured a loan of $360,000 from a bank to finance the purchase of a house. They have agreed to repay the loan in equal monthly installments of $2476 over 25 years. Find the interest rate on this loan. Round the rate to one decimal place.
A)8.7% 
B)7.7% 
C)6.7% 
D)5.7%

Quizplus · Accepted Answer

The Answer of The size of the monthly repayment k that amortizes a loan of A dollars in N years at an interest rate of r per year, compounded monthly, on the unpaid balance is given by  The value of r can be found by performing the iteration  A family secured a loan of $360,000 from a bank to finance the purchase of a house. They have agreed to repay the loan in equal monthly installments of $2476 over 25 years. Find the interest rate on this loan. Round the rate to one decimal place.
A)8.7% 
B)7.7% 
C)6.7% 
D)5.7%

The Size of the Monthly Repayment K That Amortizes a Loan