Question

A loan of amount $42000 is to be repaid in payments that each consist of a principal repayment of $840 plus the interest on the previous outstanding balance. What is the total interest paid if the interest per payment period is 2.8%?

Answer 1

Total Interest paid is $ 29,988.00

Payment period	Beginning Loan	Interest	Principal repayment	Ending loan
	a	b=a*2.8%	c	d=a-c
1	$       42,000.00	$   1,176.00	$       840.00	$       41,160.00
2	41,160.00	1,152.48	840.00	40,320.00
3	40,320.00	1,128.96	840.00	39,480.00
4	39,480.00	1,105.44	840.00	38,640.00
5	38,640.00	1,081.92	840.00	37,800.00
6	37,800.00	1,058.40	840.00	36,960.00
7	36,960.00	1,034.88	840.00	36,120.00
8	36,120.00	1,011.36	840.00	35,280.00
9	35,280.00	987.84	840.00	34,440.00
10	34,440.00	964.32	840.00	33,600.00
11	33,600.00	940.80	840.00	32,760.00
12	32,760.00	917.28	840.00	31,920.00
13	31,920.00	893.76	840.00	31,080.00
14	31,080.00	870.24	840.00	30,240.00
15	30,240.00	846.72	840.00	29,400.00
16	29,400.00	823.20	840.00	28,560.00
17	28,560.00	799.68	840.00	27,720.00
18	27,720.00	776.16	840.00	26,880.00
19	26,880.00	752.64	840.00	26,040.00
20	26,040.00	729.12	840.00	25,200.00
21	25,200.00	705.60	840.00	24,360.00
22	24,360.00	682.08	840.00	23,520.00
23	23,520.00	658.56	840.00	22,680.00
24	22,680.00	635.04	840.00	21,840.00
25	21,840.00	611.52	840.00	21,000.00
26	21,000.00	588.00	840.00	20,160.00
27	20,160.00	564.48	840.00	19,320.00
28	19,320.00	540.96	840.00	18,480.00
29	18,480.00	517.44	840.00	17,640.00
30	17,640.00	493.92	840.00	16,800.00
31	16,800.00	470.40	840.00	15,960.00
32	15,960.00	446.88	840.00	15,120.00
33	15,120.00	423.36	840.00	14,280.00
34	14,280.00	399.84	840.00	13,440.00
35	13,440.00	376.32	840.00	12,600.00
36	12,600.00	352.80	840.00	11,760.00
37	11,760.00	329.28	840.00	10,920.00
38	10,920.00	305.76	840.00	10,080.00
39	10,080.00	282.24	840.00	9,240.00
40	9,240.00	258.72	840.00	8,400.00
41	8,400.00	235.20	840.00	7,560.00
42	7,560.00	211.68	840.00	6,720.00
43	6,720.00	188.16	840.00	5,880.00
44	5,880.00	164.64	840.00	5,040.00
45	5,040.00	141.12	840.00	4,200.00
46	4,200.00	117.60	840.00	3,360.00
47	3,360.00	94.08	840.00	2,520.00
48	2,520.00	70.56	840.00	1,680.00
49	1,680.00	47.04	840.00	840.00
50	840.00	23.52	840.00	0.00
Total	$ 10,71,000.00	$ 29,988.00	$ 42,000.00	$ 10,29,000.00