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 calculate the total cost of repaying the loan, we need to add the principal amount ($3,500) to the total interest paid.
Using the loan calculator, the total interest paid is $1,267.
So the total cost of repaying the loan is $3,500 + $1,267 = $4,767.
To calculate the fixed monthly payment amount, we need to divide the total cost by the number of months in the term (24 months).
So the fixed monthly payment amount is $4,767 / 24 = $198.63.
Rounding to the nearest dollar, the fixed monthly payment amount is $199.
The total amount of interest paid is already calculated as $1,267.
Therefore, the total cost of repaying the loan is $4,767, the fixed monthly payment amount is $199, and the total amount of interest paid is $1,267.