Answer:
total interest paid over 10 year = $2669
Step-by-step explanation:
given data
borrow = $10,000
time period = 10 year
APR = 4.9%
solution
we know here for compounding no of period will be
no of period = 10 × 12 = 120
so interest rate per period will be
interest rate per period = = 0.41 %
so monthly payment will be as
monthly payment = ......1
monthly payment =
monthly payment = 105.58
so total installment will be
total installment = 120 × 105.58 = $12669.6
so total interest paid over 10 year is = $12669.6 - $10000
total interest paid over 10 year = $2669