A home improvement loan is to be repaid by equal monthly payments for six years. The interest rate is 5.4% compounded monthly and the amount borrowed is $33,500. How much interest will the borrower pay during the 4^th year?

Question

Quizplus · Accepted Answer

To find the interest paid during the 4th year, first calculate the monthly payment using the loan amount, interest rate, and term. Then, determine the remaining balance at the start of the 4th year and calculate the interest for each month of that year. The total interest paid during the 4th year is approximately $837.

A Home Improvement Loan Is to Be Repaid by Equal