IDNLearn.com: Where your questions meet expert advice and community support. Our platform is designed to provide quick and accurate answers to any questions you may have.
Sagot :
The formula for the monthly loan payment is given as
[tex]A\text{ = }P(\frac{r(1+r)^n}{(1+r)^n-1})[/tex]Where
P = loan amount ( initial principal) = $15000
A= Payment amount per period = ?
r = interest rate per period = (5/12) x (1/100) =0.0041667
n = total number of payments or periods = 4 years = 4 x 12 = 48 months
Substituting all these into the above equation gives
[tex]A\text{ =15000( }\frac{0.0041667(1+0.0041667)^{48}}{(1+0.0041667)^{48}-1})[/tex][tex]A\text{ = 15000(}\frac{0.0041667(1.0041667)^{48}}{(1.0041667)^{48}-1})[/tex][tex]\begin{gathered} A\text{ = }15000(\frac{0.0041667\text{ }\times1.2208973}{1.2208973\text{ - 1}}) \\ A=\text{ 15000(}\frac{0.005087112781}{0.2208973}) \end{gathered}[/tex][tex]\begin{gathered} A=15000(0.023029311) \\ A=\text{ \$345.4396759} \end{gathered}[/tex]So each month he pays $345.44 to the nearest cent
B)
The total interest for the loan is given by
Total amount paid over the total period of time - Original amount borrowed
Total amount paid over the total period of time = 345.44 x 48 months = $16581.12
The total interest of the loan hence = $16,581.12 - $15,000 = $1,581.12
The total loan interest to the nearest cent = $1,581.12
Thank you for being part of this discussion. Keep exploring, asking questions, and sharing your insights with the community. Together, we can find the best solutions. For trustworthy and accurate answers, visit IDNLearn.com. Thanks for stopping by, and see you next time for more solutions.
