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 $_____. the fixed monthly payment amount is ______$ . The total amount of intrest paid is _____$
The total cost of repaying the loan to the nearest dollar is $829. The fixed monthly payment amount is $93. The total amount of interest paid is $79.
are you sure
Apologies for the confusion in my previous response. Let's calculate the correct values:
To find the fixed monthly payment amount, we can use the loan payment formula:
Payment Amount = (Loan Amount * Monthly Interest Rate) / (1 - (1 + Monthly Interest Rate)^(-Number of Payments))
Where:
Loan Amount = $750
Monthly Interest Rate = (17.99% / 100) / 12 (since it is compounded monthly)
Number of Payments = 9
Plugging in the values, we get:
Payment Amount = (750 * ((17.99% / 100) / 12)) / (1 - (1 + ((17.99% / 100) / 12))^(-9))
Payment Amount ≈ $89 (rounded to the nearest dollar)
The total cost of repaying the loan can be found by multiplying the fixed monthly payment amount by the number of payments:
Total Cost = Payment Amount * Number of Payments
Total Cost = $89 * 9
Total Cost = $801 (rounded to the nearest dollar)
To find the total amount of interest paid, we subtract the initial loan amount from the total cost:
Total Interest = Total Cost - Loan Amount
Total Interest = $801 - $750
Total Interest = $51
Therefore, the correct values are:
The total cost of repaying the loan to the nearest dollar is $801.
The fixed monthly payment amount is $89.
The total amount of interest paid is $51.