Respuesta :
SOLUTION:
Step 1:
In this question, we are given the following:
Principal = $ 18,000
Time = 60 month = 60/ 12 = 5 years
Interest = 4. 3%
Step 2:
The total amount she will pay at the end of the 5 -year period is given as follows:
[tex]\begin{gathered} A\text{ = P ( 1 + }\frac{R}{100})^t \\ A\text{ = 18000 ( 1 + }\frac{4.3}{100})^5 \\ \end{gathered}[/tex][tex]\begin{gathered} A\text{ = 22,217. 4416} \\ A\text{ }\approx\text{ }22,217.44\text{ dollars} \end{gathered}[/tex]Step 3:
Now, we have that the amount = 22, 217. 44 dollars.
And the Principal = 18,000 dollars
If she makes all the monthly payments,
Then, the total amount of interest she will pay on the loan is:
[tex]22,\text{ 217. 44 - 18,000 = 4,217. 44 dollars}[/tex]CONCLUSION:
The total amount of interest she will pay on the loan = 4, 217. 44 dollars.
