The amount of money that Jacinta pays to service the whole loan as interest is sh. 5,899.
Interest is the finance charge that a borrowers incurs to service a loan.
Interest is based on the outstanding balance at the end of the payment period.
Principal loan = sh. 100,000
Interest on outstanding balance = 1%
Monthly payment of principal and interest = sh. 10,000
Period of repayment = Monthly
Beginning Interest Payment Ending Balance
1st month sh. 100,000 sh. 1,000 sh. 10,000 sh. 91,000
2nd month sh. 91,000 sh. 910 sh. 10,000 sh. 81,910
3rd month sh. 81,910 sh.819 sh. 10,000 sh. 72,729
4th month sh. 72,729 sh. 727 sh. 10,000 sh. 63,456
5th month sh. 63,456 sh. 636 sh. 10,000 sh. 54,092
6th month sh. 54,092 sh. 541 sh. 10,000 sh. 44,633
7th month sh. 44,633 sh. 446 sh. 10,000 sh. 35,079
8th month sh. 35,079 sh. 351 sh. 10,000 sh. 25,430
9th month sh. 25,430 sh. 254 sh. 10,000 sh. 15,684
10th month sh. 15,684 sh. 157 sh. 10,000 sh. 5,841
11th month sh. 5,841 sh. 58 sh. 5,899 sh. 0
Total interest paid = sh. 5,899
Thus, based on the payment schedule above, the amount of money that Jacinta pays to service the whole loan as interest is sh. 5,899.
Learn more about loan interests at https://brainly.com/question/24576997
#SPJ1
