Jameson has 4300 in credit card debt with 14% interest that he wants to pay off in 24 months. He will need to make monthly payments of 206.46 each month. Calculate the total cos…

Question

asked Nov 17, 2021 14.2k views

1 Answer

Michal Zaborowski · Answer 1 · 2021-11-21T18:46:13+0000

Answer:

Total cost of repayment
= 4955.04

Net interest paid
= 655.04

Explanation:

Given

Amount taken on loan
= 4300

Repayment plan

Monthly installment

206.46

Yearly installment
= 206.46 * 12 = 2477.52

Rate of interest per year
= 14 %

Time Period for repaying the loan
= 2 years

The total amount repaid by Jameson at the rate of
206.46 per month for next
months

$= 206.46 *24\\= 4955.04$

Net interest paid

$= 4955.04 - 4300\\= 655.04$

Total cost of repayment
= 4955.04

Net interest paid
= 655.04