Question 1129176

A loan for $5000 with interest at 7.75% compounded semi annually is reaid after 5years,10 months. What is the amount of interest paid
<pre>This is a loan which leads me to believe that monthly payments were made. The monthly payment, based on a principal of $5,000, interest rate
of 7.75%, and term of 5 years, 10 months, or {{{matrix(1,4, 5&10/12, "=", 5&5/6, years)}}}, is: $540.84. Such a payment, over a {{{matrix(1,2, 5&5/6-year, period)}}}, comes to $6,309.75.
Therefore, {{{highlight_green(matrix(1,6, interest, paid, "=", "$6,309.75 - $5,000", "=", "$1,309.75"))}}}