what is the amount of interest charged for the first 6 months?\nmonth 1 2 3 4 5 6\nbalance $650 $354.08…

what is the amount of interest charged for the first 6 months?\nmonth 1 2 3 4 5 6\nbalance $650 $354.08 $307.63 $260.64 $213.10 $165\npayment $300 $50 $50 $50 $50 $50\ninterest rate 0.01167 0.01167 0.01167 0.01167 0.01167 0.01167\ninterest owed $4.08

what is the amount of interest charged for the first 6 months?\nmonth 1 2 3 4 5 6\nbalance $650 $354.08 $307.63 $260.64 $213.10 $165\npayment $300 $50 $50 $50 $50 $50\ninterest rate 0.01167 0.01167 0.01167 0.01167 0.01167 0.01167\ninterest owed $4.08

Answer

Explanation:

Step1: Recall the interest - calculation formula

The monthly interest amount is calculated as the balance at the start of the month times the monthly interest rate. The annual percentage rate is 14%, so the monthly interest rate $r=\frac{14%}{12}\approx0.01167$.

Step2: Calculate the interest for each month

For month 1: Interest $I_1 = 650\times0.01167 = 7.6855\approx7.69$ For month 2: Balance = $650 - 300=350$, Interest $I_2 = 354.08\times0.01167 = 4.1211136\approx4.12$ For month 3: Balance = $354.08 - 50 = 304.08$, Interest $I_3=307.63\times0.01167 = 3.6000421\approx3.60$ For month 4: Balance = $307.63 - 50 = 257.63$, Interest $I_4 = 260.64\times0.01167 = 3.0416688\approx3.04$ For month 5: Balance = $260.64 - 50 = 210.64$, Interest $I_5 = 213.10\times0.01167 = 2.486877\approx2.49$ For month 6: Balance = $213.10 - 50 = 163.10$, Interest $I_6 = 165\times0.01167 = 1.92555\approx1.93$

Step3: Sum up the interests

Total interest $I=I_1 + I_2+I_3+I_4+I_5+I_6$ $I = 7.69+4.12 + 3.60+3.04+2.49+1.93=22.87$

Answer:

$22.87$