Find the amount paid for the loan. $2400 at 10.5% for 5 years
1 answer:
I think you mean the total mount paid for the loan.
There is a formula for that. (See attached).
principal = 2,400
n = number of payments = 5 * 12 months = 60
rate = 10.5 / 1,200 = .00875
Loan Cost Total = (r*p*n) / (1 - (1 +r)^-n)
Loan Cost Total = .00875 * 2,400 * 60 / (1 -(1.00875^-60)
Loan Cost Total = 1,260 / (1 - <span> <span> <span> 0.5929077624 </span> </span> </span> )
Loan Cost Total = 1,260 / <span> <span> <span> 0.4070922376 </span> </span> </span>
Loan Cost Total = <span> <span> <span> 3,095.12
</span></span></span>
There is a formula for that. (See attached).
principal = 2,400
n = number of payments = 5 * 12 months = 60
rate = 10.5 / 1,200 = .00875
Loan Cost Total = (r*p*n) / (1 - (1 +r)^-n)
Loan Cost Total = .00875 * 2,400 * 60 / (1 -(1.00875^-60)
Loan Cost Total = 1,260 / (1 - <span> <span> <span> 0.5929077624 </span> </span> </span> )
Loan Cost Total = 1,260 / <span> <span> <span> 0.4070922376 </span> </span> </span>
Loan Cost Total = <span> <span> <span> 3,095.12
</span></span></span>
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