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you borrow $12,000 for six years and an interest rate of 1.25% what is the maturity of the loan ​

Sagot :

Answer:

The "total loan cost" formula is what you'll need (and it is attached).

Interest =1.25 / 1,200 =  0.0010416667

and "n" is number of months (6 years = 72 months)

Total Loan Cost = (r*p*n) / 1 -((1 + r)^-n)

Total Loan Cost = (0.0010416667  * 12,000 * 72) / 1 -((1.0010416667)^-72)

Total Loan Cost = 900 / 1 -0.9277797019

Total Loan Cost = 900 / 0.0722202981  

Total Loan Cost = 12,461.87

Step-by-step explanation:

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