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Math solution on Compound Interest

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If I borrow $115,700 at 10.5% compounded monthly for 25 years. If I make all the payments (300) how much interest would I pay? Am I suppose to use just the simple calculation of I=PRT or am I forgetting something to make it compounded?

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If I borrow $115,700 at 10.5% compounded monthly for 25 years. If I make all the payments (300) how much interest would I pay? Am I suppose to use just the simple calculation of I=PRT or am I forgetting something to make it compounded? Get a step by step solution and answer below.

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Compound interest is interest that is paid on both the principal and on any interest from previous years.

The correct formula ...

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Carmel Philistin, MBA/HCM
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  • BA, Brooklyn College
  • MBA/HCM, Phoenix University
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