Answer:
A= $19354.71
At the end of 6 years
Step-by-step explanation:
$14,000 loan at an interest rate of 5.4% for 6 years.
Amount to be paid at the end of the six years is
A= p(1+r/n)^(nt)
P= $14000
r= 0.054
t = 6
n = 6*12 = 72
A= 14000(1+0.054/72)^(72*6)
A= 14000(1+ 0.00075)^(432)
A= 14000(1.00075)^(432)
A= 14000(1.38247941)
A= 19354.71
A= $19354.71
Answer:
The correct answers are monthly payment: $228.08 and total finance charge: $2,421.76.
Step-by-step explanation:
Using formula
M = [(P(r/12)(1 + r/12)^12t) / (1 + r/12)^12t] - 1
M = monthly payment
P = principal
r = interest rate
t = number of years
The monthly payment is $228.08. For 6 years, the loan period is for 72 months. $228.08 x 72 = $16,421.76
So the total finance charge is $16,421.76 - $14,000 = $2,421.76.
