Find c and I. Choose the right answers.
Hint: c = total of payments - amount financed
Amount Financed (m) = $3,500
Number of Payments per year (y) = 12
Number of Payments (n) = 36
36 payments of $104.50 each.
To the nearest penny, total interest(c) = $
To the nearest tenth, I =
To find the total interest (c) and the total cost of the loan (I), you can use the following formulas:
c = Total of payments - Amount financed
I = c / Amount financed
First, let's calculate the total of payments:
Total of payments = Payment per period * Number of periods
Payment per period = $104.50
Number of periods = 36
Total of payments = $104.50 * 36 = $3,762
Now, let's calculate c:
c = Total of payments - Amount financed
Amount financed (m) = $3,500
Total of payments = $3,762
c = $3,762 - $3,500 = $262
The total interest (c) is $262.
Next, let's calculate I:
I = c / Amount financed
I = $262 / $3,500 = 0.0749 (rounded to four decimal places)
To the nearest tenth, I = 0.1 (rounded to the nearest tenth)
Therefore, the total interest (c) is $262 (nearest penny), and I = 0.1 (nearest tenth).
To find the total interest paid (c) and the total cost of borrowing (I), we first need to calculate the total of payments.
The number of payments (n) is given as 36.
The monthly payment amount is $104.50.
To find the total of payments, we multiply the monthly payment amount by the number of payments:
Total of payments = Monthly Payment x Number of Payments
Total of payments = $104.50 x 36
Total of payments = $3,762
Next, we can find the amount financed (m), which is given as $3,500.
To find c (total interest paid), we subtract the amount financed from the total of payments:
c = Total of Payments - Amount Financed
c = $3,762 - $3,500
c = $262 (to the nearest penny)
To calculate I (total cost of borrowing), we need to subtract the amount financed from the total of payments and round it to the nearest tenth:
I = Total of Payments - Amount Financed
I = $3,762 - $3,500
I = $262 (to the nearest tenth)
Po = $3,500, T = 3 Years, P = 36 * 104.50 = $3762.
Int. = P-Po = 3762 - 3500 = $262.
Int. = 3500*r*3 = 262, 10,500r = 262, r = 0.025 = 2.5% = APR.