math

posted by jj

on a loan of $3700 a person pays back $430 monthly over 4 years. how much interest was paid on the loan? show ur work

A) 20640 B) 16940 C) 2410 D) 1720

  1. Reiny

    interest = 430(48) - 3700 = 16900

    absurd question!!!

    The more interesting question would be:
    What would be the interest rate for this scenario??

    430(1 - (1+x)^-48)/x = 3700
    1 - 1/(1+x)^48 = 8.6x

    x ≈ 0.115671 , so the annual rate is appr 139%

  2. jj

    B?

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