Question

Suppose you have a $60,000 loan with an annual percentage rate of 8% for 25 years.

Answer 1

Answer:

The amount will be more by $30000 in the second loan.

Step-by-step explanation:

The loan of $60000 with APR 8% and for 25 years will grow to $60000 ( 1 + \frac{8 \times 25}{100} ) = 180000$ dollars

So, I have to pay $180000 after 25 years.

Now, if we add $100 per month to this final amount then I have to pay $(180000 + 100 × 25 × 12) = $210000

Therefore, the loan amount will be more by $30000 in the second loan. (Answer)