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
