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Debora [2.8K]
3 years ago
9

The total of monthly payments for a three-year loan is $22,317.12. The APR is 4%. How much money was originally borrowed?

Mathematics
1 answer:
Goshia [24]3 years ago
4 0

Answer:

$717336

Step-by-step explanation:

The total of monthly payments for a 3-year loan is $22317.12.

So, the total amount has to pay back in 3 years is $(22317.12 × 12 × 3) = $803416.32.

Let the amount of money that was originally borrowed is $x and the given APR is 4%.

Then we can write, x(1 + \frac{4 \times 3}{100}) = 803416.32

⇒ 1.12x = 803416.32

⇒ x = $717336 (answer)

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