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
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%