Kamil has taken a loan of K10000 from a bank to renovate his family home. He paid the loan in two years at an interest rate of 12% compounded annually. How much did he pay per month?
To find out how much Kamil paid per month, we first need to find the total amount he paid back after two years.
The formula to calculate compound interest is given by: A = P (1 + r/n)^(nt), where:
A = the future value of the investment/loan
P = the principal investment/loan amount
r = annual interest rate (as decimal)
n = number of times that interest is compounded per year
t = number of years
In this case, the principal loan amount (P) is K10000, the annual interest rate (r) is 12% or 0.12 as a decimal, the number of times interest is compounded per year (n) is 1, and the number of years (t) is 2.
Using the compound interest formula:
A = 10000(1 + 0.12/1)^(1*2)
A = 10000(1 + 0.12)^2
A = 10000(1.12)^2
A = 10000(1.2544)
A = 12544
Therefore, Kamil paid back a total of K12544 after two years.
To find out how much he paid per month, we divide the total amount paid back by the number of months in two years (24 months).
Monthly payment = total amount paid back / number of months
Monthly payment = 12544 / 24
Monthly payment ≈ K522.67
So, Kamil paid approximately K522.67 per month to the bank for the loan.
To calculate the monthly payment, we first need to find the total amount that Kamil will have to repay.
Given:
Principal (P) = K10000
Interest Rate (r) = 12%
Time (t) = 2 years
The formula for compound interest is:
A = P(1 + r/n)^(nt)
Where:
A = Total repayment amount
P = Principal
r = Interest rate
n = Number of times interest is compounded per year
t = Time in years
Since the interest is compounded annually, n = 1.
A = K10000(1 + 0.12/1)^(1*2)
A = K10000(1 + 0.12)^2
A = K10000(1.12)^2
A = K10000 * 1.2544
A = K12544
So, Kamil will have to repay K12544 in two years.
To calculate the monthly payment, we divide the total repayment amount by the number of months in the loan term.
Number of months = 2 years * 12 months/year = 24 months
Monthly Payment = Total repayment amount / Number of months
Monthly Payment = K12544 / 24
Monthly Payment ≈ K522.67
Therefore, Kamil will have to pay approximately K522.67 per month.
To find out how much Kamil paid per month, we need to first determine the total amount paid for the loan.
The formula to calculate compound interest is:
A = P(1 + r/n)^(nt)
Where:
A = the future value of the investment/loan, including interest
P = the principal investment amount (the initial loan amount)
r = the annual interest rate (as a decimal)
n = the number of times that interest is compounded per year
t = the number of years the money is invested/borrowed for
In this case, the principal investment amount (P) is K10000, the annual interest rate (r) is 12% or 0.12 as a decimal, the number of times interest is compounded (n) is 1 (compounded annually), and the number of years (t) is 2.
Plug these values into the formula:
A = 10000(1 + 0.12/1)^(1*2)
A = 10000(1.12)^2
A = 10000 * 1.2544
A = 12544
So, Kamil paid a total of K12544 over the two-year period.
To find out how much he paid per month, divide the total amount paid by the number of months in two years:
Total months = 2 years * 12 months/year
Total months = 24 months
Amount paid per month = Total amount paid / Total months
Amount paid per month = K12544 / 24 months
Amount paid per month ≈ K522.67
Therefore, Kamil paid approximately K522.67 per month.