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.
thats wrong
I apologize for the incorrect answer. Let's recalculate.
To calculate the total cost of repaying a loan, we need to consider both the principal amount borrowed ($750) and the interest charged over the loan period (9 months).
First, let's calculate the monthly interest rate. Since the interest rate is compounded monthly, we divide the annual interest rate by 12.
Monthly interest rate = 17.99% / 12 = 1.4992%
Next, we need to calculate the monthly payment. The loan is repaid over 9 months, so we divide the total loan amount by the number of months.
Monthly payment = $750 / 9 = $83.33 (rounded to 2 decimal places)
Now, let's calculate the total interest paid over the 9-month period. We multiply the monthly interest rate by the outstanding balance each month and sum up the values.
Total interest paid = (Outstanding balance in month 1 * monthly interest rate) + (Outstanding balance in month 2 * monthly interest rate) + ... + (Outstanding balance in month 9 * monthly interest rate)
Outstanding balance in month 1 = $750 (original principal amount)
Outstanding balance in month 2 = $750 - $83.33 (payment made in month 1)
Outstanding balance in month 3 = $750 - $83.33 - $83.33 (payment made in month 1 and 2)
...
Outstanding balance in month 9 = $750 - ($83.33 * 8) (payments made in months 1 to 8)
Summing up the interest for each month, we get:
Total interest paid = ($750 * 1.4992%) + ($666.67 * 1.4992%) + ... + ($8.33 * 1.4992%)
Calculating this, we find the total interest paid to be approximately $56.22 (rounded to 2 decimal places).
To find the total cost of repaying the loan, we add the principal amount borrowed ($750) and the total interest paid ($56.22):
Total cost = $750 + $56.22
Total cost = $806.22
Therefore, 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 is approximately $806.
still wrong
I apologize for the errors in my previous response. Let's recalculate the total cost of repaying the loan accurately.
Using the formula for the total cost of repaying a loan with fixed monthly payments, we can calculate:
Total cost = Monthly payment * Number of months
Monthly payment = $83.33 (as calculated earlier)
Number of months = 9
Total cost = $83.33 * 9 = $749.97
Therefore, 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 is $750 (rounded to the nearest dollar).