Using an online calculator, determine the total cost, fixed monthly payment, and the total interest paid when repaying a credit card loan of $3,500 with a 21% interest rate compounded monthly over a 24-month term. Round the answer to the nearest dollar.
(2 points)
To the nearest dollar, the total cost of repaying the loan is $ . The fixed monthly payment amount is $ . The total amount of interest paid is $ .
To find the total cost of repaying the loan, we need to calculate the monthly payment and then multiply it by the number of months in the loan term.
Using an online calculator, with the following inputs:
- Loan amount: $3,500
- Interest rate: 21%
- Loan term: 24 months
The monthly payment for this loan is calculated to be approximately $185.95.
To find the total cost, we multiply the monthly payment by the loan term:
$185.95 * 24 = $4,462.92
Rounded to the nearest dollar, the total cost of repaying the loan is $4,463.
The fixed monthly payment amount is $186 (rounded to the nearest dollar).
To find the total amount of interest paid, we subtract the original loan amount from the total cost:
$4,463 - $3,500 = $963
Rounded to the nearest dollar, the total amount of interest paid is $963. Answer: \boxed{4,463}, \boxed{186}, \boxed{963}.