Using an online loan calculator, determine the total cost of repaying a $750 credit card loan with a 17.99% interest rate compounded monthly and a fixed monthly payment over a period of 9 months. Round the answer to the nearest dollar.(1 point)
The total cost of repaying the loan to the nearest dollar is $
.
The total cost of repaying the loan to the nearest dollar is $ 832.
wrong
I apologize for the mistake. To calculate the total cost of repaying the loan, we can use the formula for calculating the monthly payment on a fixed loan:
Monthly payment = Principal * (rate*(1+rate)^months) / ((1+rate)^months - 1)
Where Principal is the initial loan amount ($750), rate is the monthly interest rate (17.99%/12), and months is the loan duration (9 months).
Plugging in the values:
Monthly payment = 750 * (0.1799/12 * (1+0.1799/12)^9) / ((1+0.1799/12)^9 - 1)
Monthly payment = $89.07
Now we can calculate the total cost of repaying the loan over 9 months:
Total cost = Monthly payment * months
Total cost = $89.07 * 9
Total cost = $801.63
Rounding to the nearest dollar, the total cost of repaying the loan is $802.