suppose you borrow RM 14,000 at a rate of 10.0 % and must repay it in 5 equal installment at the end of each of the next 5 years.How much interest would you have to pay in the first year?
The interest in the first year would simply be
.1(14,000) = $1,400
The fact of 5 equal payments for 5 years has nothing to do with this.
Now for the 2nd year's interest, we need to do further calculations
To calculate the interest you would have to pay in the first year, we can use the formula for simple interest, which is:
Interest = Principal * Rate * Time
First, let's calculate the interest for the first year. In this case, the principal is RM 14,000, and the rate is 10.0%. The time is one year.
Interest = 14,000 * 0.10 * 1
Now, we can calculate the interest:
Interest = RM 1,400
So, you would have to pay RM 1,400 as interest in the first year.
To calculate the interest you would have to pay in the first year, we need to find the interest for the first installment.
Step 1: Calculate the interest for the first installment
Interest = Loan Amount * Interest Rate
Interest = RM 14,000 * 10.0% (0.10)
Interest = RM 1,400
Therefore, you would have to pay RM 1,400 in interest in the first year.