lionel cooper paid for a new mechanic's tools with an installment loan of $6,000 at 8% for 36 months with a monthly payment of $187.80. after 20 payments, the balance is $2,849.08. he pays off the loan when the next payment is due.
a.) what is the current month's interest?
b.) what is the final payment?
c.) how much is saved by paying off the loan early?

a) Current month's interest is: $40

b) The final payment is $7,440

c) Amount saved by paying off loan early is: $600

Step-by-step explanation:

Principal = $6,000

Interest rate = 8% or 0.08

Time = 36 months or 3 years

After 20 payments, the payment is $2,849.08.

a) What is the CURRENT month's interest?

The formula used to find the interest is:

I = P*r*t

Where P= Principal Amount

r = interest rate

and t = time in years

Putting the given values:

I = 6,000 * 0.08 * 3

I = 1440

Total Interest = $1440

Current Month interest = 1440/36

Current Month interest = 40

So, Current month's interest is: $40

b) What is the final payment?

The formula used is:

A = P(1+r*t)

A = 6,000(1+0.08*3)

A = 6000*(1.24)

A = 7,440

So, the final payment is $7,440

c) How much is saved by paying off the loan early?

The current balance paid is $2,849.08

The loan is paid when next payment is due.

So, remaining amount to be paid is:

Remaining Amount = Final Payment - Current balance paid

Remaining Amount = 7,440 - 2,849.08

Remaining Amount = 4,590.92

Remaining months in which amount is to be paid: 36-20 = 16 months

The loan is paid off next month so interest rate of remaining 15 months = 15*40 = 600

The amount paid on next payment = 4590.92 - 600 = $3990.9

So, amount saved by paying off loan early is: $600

hello from mrbilldoesmath!

answer:

25x^2 + 90x + 84

discussion:

mn(x) = m(n(x)) = m( 5x + 9) =

(5x + 9)^2 + 3 =>

25x^2 + 90x + 9^2 + 3 =

25x^2 + 90x + 84                 (as 9^2 = 9*9 = 81)

which is the second choice

regards,  

mrb

p.s.   i'll be on vacation from friday, dec 22 to jan 2, 2019. have a great new year!