using an online loan calculator, determine the total cost of repaying a $750 credit card loan with a 17.99% interest rate compounded monthly and a fixed monthly payment over a period of 9 months. Round the answer to the nearest dollar.
The total cost of repaying the loan to the nearest dollar is $______.
To calculate the total cost of repaying the loan, we need to use the formula for calculating the total cost of a loan with compound interest:
Total Cost = (Monthly Payment * Number of Payments) - Principal Loan Amount
Where:
Monthly Payment = the fixed monthly payment
Number of Payments = the total number of payments over the loan term
Principal Loan Amount = the initial loan amount
Given:
Principal Loan Amount = $750
Interest Rate = 17.99% compounded monthly
Monthly Payment = We don't have this information.
Since we don't have the monthly payment, we can use the online loan calculator to calculate it.
Using an online calculator, we can determine that the monthly payment for a $750 loan over 9 months with a 17.99% interest rate compounded monthly is approximately $89.
Now we can substitute the values into the formula:
Total Cost = ($89 * 9) - $750
Total Cost = $801 - $750
Total Cost = $51
Therefore, the total cost of repaying the loan to the nearest dollar is $51.