Answer:
Step-by-step explanation:
Mrs. Siebenaller bought a bus for 25,000 with a 7% interest rate and she gets a loan payoff of 60 months,
We know that,
Where,
PV = Present value of annuity = 25000,
r = rate of interest of each period = % monthly
n = number of periods = 60 months,
Putting the values,
Hence total amount paid is,
Therefore interest amount is,