Question 885359: A loan of 2400 dollars is to be paid in the following manner; 300 dollars will be paid at the end of each year plus 10% interest on the unpaid balance at the beginning of the year. Find the total of all the payments.
Answer by harpazo(655)   (Show Source):
You can put this solution on YOUR website! I worked out the problem again. I came to the conclusion that the choices given for a possible answer are wrong.
A loan of 2400 dollars is to be paid in the following manner;
300 dollars will be paid at the end of each year
plus 10% interest on the unpaid balance at the beginning of the year.
Find the total of all the payments.
The loan is for $2400.
2400/300 = 8
It will take 8 years to make the full payment
plus 10% on the unpaid balance.
0.1(2400 + 2100 + 1800 + 1500 + 1200 + 900 + 600 + 300) = 1,080
The total of all payments will then be $1,080 + $2,400 or $3,480.
The correct answer is $3,480.
How can it be anymore?
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