Deandre borrowed money from an online lending company to invest in rare coins he took out a personal aortized loan for $22,500 at an interest rate of 7.65% with monthly payments for a term of 3 years for which part do not round any intermediate computations and round your final answers to the nearest cent find deandre's monthly payment
To find Deandre's monthly payment, we first need to calculate the monthly interest rate and the number of months in the loan term.
The monthly interest rate can be found by dividing the annual interest rate by 12 and converting it to decimal form:
Monthly interest rate = 7.65% / 12 / 100 = 0.006375
The number of months in the loan term is equal to the number of years multiplied by 12:
Number of months = 3 years * 12 months/year = 36 months
Next, we can use the formula for the monthly payment of an amortized loan:
Monthly payment = (Loan amount * Monthly interest rate) / (1 - (1 + Monthly interest rate)^(-Number of months))
Plugging in the values we calculated, we get:
Monthly payment = (22500 * 0.006375) / (1 - (1 + 0.006375)^(-36))
Calculating this expression, the monthly payment is approximately $685.87.
If deandre pays the monthly payment each month for the full term find his total amount to repay the loan
To find Deandre's total amount repaid over the loan term, we can multiply his monthly payment by the number of months in the loan:
Total amount repaid = Monthly payment * Number of months
Plugging in the values we calculated previously, we get:
Total amount repaid = $685.87 * 36 months
Calculating this expression, the total amount repaid is approximately $24,812.33.
If deandre pays the monthly payment each month for the full term find the total amount of interest he will pay
To find the total amount of interest Deandre will pay over the loan term, we can subtract the initial loan amount from the total amount repaid:
Total interest paid = Total amount repaid - Loan amount
The Loan amount is $22,500, and the Total amount repaid is approximately $24,812.33 (as calculated in the previous response).
Plugging in these values, we get:
Total interest paid = $24,812.33 - $22,500
Calculating this, the total amount of interest Deandre will pay is approximately $2,312.33.
Those are not correct numbers
Apologies for the incorrect calculations. Let's recalculate the total amount repaid and the total amount of interest paid.
Total amount repaid = Monthly payment * Number of months
Total amount repaid = $685.87 * 36 months
Total amount repaid = $24,772.32
To calculate the total amount of interest paid, we can subtract the loan amount from the total amount repaid:
Total interest paid = Total amount repaid - Loan amount
Total interest paid = $24,772.32 - $22,500
Total interest paid = $2,272.32
So, the correct total amount repaid is $24,772.32, and the total amount of interest paid is $2,272.32.