$10,000.00 loan at 8% to be paid in full in 88 months. How much interest would be due at the payoff of the loan?
I = PRT
I = 10,000 * 0.08 * 7.333
Thanks much!
You're welcome.
To calculate the interest due at the payoff of a loan, you'll need to know the principal amount (loan amount), the interest rate, and the loan term.
In this case, the principal amount is $10,000.00 and the interest rate is 8%. The loan term is 88 months.
To calculate the interest due, you can use the formula:
Interest = Principal amount × Interest rate × Loan term
Plugging in the values you provided:
Interest = $10,000.00 × 8% × 88 months
First, convert the interest rate from a percentage to a decimal by dividing it by 100:
8% / 100 = 0.08
Now, you can calculate the interest:
Interest = $10,000.00 × 0.08 × 88 months
Multiply the principal amount by the interest rate:
Interest = $800.00 × 88 months
Finally, multiply the result by the loan term (number of months):
Interest = $70,400.00
Therefore, the interest due at the payoff of the loan would be $70,400.00.