Question

Laura took out a loan of $25,000 for a term of 60 months ( 5years) at an interest rate 7.5% use th amortization table provided to complete the statement

Answer 1

Answer:

Laura's monthly payment will be $501, and her total finance charge over the course of the loan will be $5,060.

Step-by-step explanation:

Given that in a 5-year loan with an annual interest of 7.5%, the monthly payments for every $ 1,000 are $ 20.04, taking into account that Laura took a loan of $ 25,000, to determine the monthly payments and the total interest to be paid, they must be made the following calculations:

20.04 x 25 = X

501 = X

Thus, the monthly payments that Laura will have to make will be $ 501.

(501 x 12 x 5) - 25,000 = X

30,060 - 25,000 = X

5,060 = X

In turn, the total finance charge will be $ 5,060.