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 can use the following formula:
Total Cost = Loan Amount + Total Interest Paid
Loan Amount = $3,500
Total Interest Paid can be calculated using an online calculator.
Using an online calculator, we find that the monthly payment for a loan of $3,500 with a 21% interest rate compounded monthly over a 24-month term is approximately $189.
To find the total amount of interest paid, we can use the formula:
Total Interest Paid = (Monthly Payment * Number of Months) - Loan Amount
Total Interest Paid = ($189 * 24) - $3,500
Total Interest Paid = $4,536 - $3,500
Total Interest Paid = $1,036
To the nearest dollar, the total cost of repaying the loan is $4,536.
The fixed monthly payment amount is $189.
The total amount of interest paid is $1,036.