# math

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. 0
2. 2
1. 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%

1. 0
posted by Reiny
2. B?

1. 0
posted by jj

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