Paying off a Loan (HSC SSCE Mathematics Advanced): Quizzes

Geometric progression (GP)

(principal + interest) - (instalments + int)

One time period after

$\frac{a(r^n - 1)}{r - 1}$

1%

The initial interest charge

Set $A_n = 0$ and solve for $n$ using logs

$A_{n+1} = A_n(1 + R) - M$

The loan is fully paid off

Initial interest is 2000 USD, exceeds payment