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ehidna [41]
2 years ago
8

PLEASE HELPPP!! I need help with both questions

Mathematics
1 answer:
navik [9.2K]2 years ago
3 0

9514 1404 393

Answer:

  • borrow: $21,056.60
  • interest: $1,983.40

Step-by-step explanation:

The relation between the monthly payment (A) and the principal borrowed (P) is ...

  A = P(r/12)/(1 -(1 +r/12)^-n)

where the annual interest rate is r and n is the number of monthly payments.

Then the principal P can be found as ...

  P = $384(12/0.036)(1 -(1 +0.036/12)^-60) ≈ $21,056.60 . . . loan amount

The sum of payments is ...

  $384 × 60 = $23,040.

The difference between the payments made and the loan principal amount is the interest paid:

  $23,040.00 -21,056.60 = $1,983.40 . . . total interest

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