Question

To help pay for art school, Keisha borrowed money from an online lending company.

Answer 1

Answer:

• payment: $413.93
• total repaid: $74,507.40
• interest: $22,507.40

Step-by-step explanation:

(a) The monthly payment A on principal P at monthly rate r for n months can be computed using ...

  A = Pr/(1 -(1+r)^-n)

For P=$52000, r = .051/12 = 0.00425, n = 12*15 = 180, the payment is ...

  A = $52000·0.00425/(1 -1.00425^-180) ≈ $413.93

(b) The total of 180 payments is ...

  180 · $413.93 = $74,507.40

(c) The difference from the principal is the interest paid:

  $74,507.40 -52,000 = $22,507.40