Annual interest

A loan of 10 000 euro is to be repaid in annual payments over 10 years. Assuming a fixed 10% annual interest rate compounded annually, calculate:

(a) the amount of each annual repayment
(b) the total interest paid.

Correct answer:

a =  1627.45 Eur
i =  6274.54 Eur

Step-by-step explanation:

l=10000 eur r=10%=10010=0.1 n=10  a=l (1+r)n1r (1+r)n=10000 (1+0.1)1010.1 (1+0.1)10=1627.45 Eur=1.6103 Eur
i=n al=10 1627.453910000=6274.54 Eur=6.3103 Eur

Did you find an error or inaccuracy? Feel free to write us. Thank you!


Tips to related online calculators
Do you want to convert time units like minutes to seconds?

You need to know the following knowledge to solve this word math problem:

Related math problems and questions: