At Westonci.ca, we connect you with the best answers from a community of experienced and knowledgeable individuals. Get quick and reliable answers to your questions from a dedicated community of professionals on our platform. Join our Q&A platform to connect with experts dedicated to providing accurate answers to your questions in various fields.
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 visiting our platform. We hope you found the answers you were looking for. Come back anytime you need more information. Thanks for stopping by. We strive to provide the best answers for all your questions. See you again soon. Discover more at Westonci.ca. Return for the latest expert answers and updates on various topics.
