Question

Jameson has 4300 in credit card debt with 14% interest that he wants to pay off in 24 months. He will need to make monthly payments of 206.46 each month. Calculate the total cost of repayment and the interest Jameson will pay?

Answer 1

Answer:

Total cost of repayment  $= 4955.04$

Net interest paid $= 655.04$

Step-by-step explanation:

Given

Amount taken on loan $= 4300$

Repayment plan

Monthly installment$=$ $206.46$

Yearly installment  $= 206.46 * 12 = 2477.52$

Rate of interest per year $= 14$ %

Time Period for repaying the loan $= 2$ years

The total amount repaid by Jameson at the rate of $206.46$ per month for next $24$ months

$= 206.46 *24\\= 4955.04$

Net interest paid

$= 4955.04 - 4300\\= 655.04$

Total cost of repayment  $= 4955.04$

Net interest paid $= 655.04$