Noori borrowed $5,000 for 4.5 years. For the first 2.5 years, the interest rate on the loan was 8.4% compounded monthly. Then the rate became 5.5% compounded semi-annually. What total amount was required to pay off the loan if no payments were made before the expiry of the 4.5-year term?

Question

Quizplus · Accepted Answer

The Answer of Noori borrowed $5,000 for 4.5 years. For the first 2.5 years, the interest rate on the loan was 8.4% compounded monthly. Then the rate became 5.5% compounded semi-annually. What total amount was required to pay off the loan if no payments were made before the expiry of the 4.5-year term?

Noori Borrowed $5,000 for 4