Question

7. Suppose you apply for a ten-year loan in the amount of $21,500 with an APR of 5.7%. Under these conditions, your monthly payment will be $235.47. When the loan is paid off, what is the total amount of interest that you will have paid over the ten years? 8. Suppose you have a balance of $3814.27 on your credit card, which charges an APR of 20.4%. Assume that you charge no additional expenses to the card and you want to pay off the balance in four years of equal monthly payments. (a) Calculate the monthly payment. (b) When the card is paid off after four years, what percentage of your total payment will have gone toward the principal, and what percentage will have gone toward interest?

          7. Suppose you apply for a ten-year loan in the amount of $21,500 with an APR of 5.7%. Under these conditions, your monthly payment will be $235.47. When the loan is paid off, what is the total amount of interest that you will have paid over the ten years?

8. Suppose you have a balance of $3814.27 on your credit card, which charges an APR of 20.4%. Assume that you charge no additional expenses to the card and you want to pay off the balance in four years of equal monthly payments.

(a) Calculate the monthly payment.

(b) When the card is paid off after four years, what percentage of your total payment will have gone toward the principal, and what percentage will have gone toward interest?

7. Suppose you apply for a ten-year loan in the amount of 21,500 with an APR of 5.7%. Under these conditions, your monthly payment will be $235.47. When the loan is paid off, what is the total amount of interest that you will have paid over the ten years?

8. Suppose you have a balance of3814.27 on your credit card, which charges an APR of 20.4%. Assume that you charge no additional expenses to the card and you want to pay off the balance in four years of equal monthly payments.

(a) Calculate the monthly payment.

(b) When the card is paid off after four years, what percentage of your total payment will have gone toward the principal, and what percentage will have gone toward interest?

Added by Stephen G.

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