Solved

# Interest Rates (Financing)

Posted on 2006-07-18

I am not sure how to tackle this problem. Could one explain how to do this the long way (like finding all the interests and subtracting) and how to do it with a formula. I just want to learn how to do this.

"Robyn borrows $10000 from a bank. Interest at 18% per annum is calculated monthly on the amount of money still owing. Robyn repays $600 each month. How much does Robyn owe the bank after the first 12 repayments?"

I am not sure if one should first find the interest and then subtract 600 or the other way around. And then where to go from this. If anyone can help me grab the idea behind this finance problems it will really be helpful.