Say you take out a loan with a principal of $44,500. the interest rate is 13.11%, compounded monthly. if you make consistent monthly payments and pay off the loan over the course of six and a half years, how much interest will you have paid in total? round dollar amounts to the nearest cent.
a.
$21,849.92
b.
$3,018.03
c.
$20,003.60
d.
$24,321.18

Answer-

The interest paid is $21,849.92

Solution-

We know that,

Here,

PV = Present Value of annuity = $44500

P = Payment monthly

r = 13.11% annually = 0.1311 annually = monthly

n = 6.5 years = 78 months

Putting the values,

The monthly payment is $850.64

So, the net amount paid is

Therefore, the amount of interest is

step-by-step explanation:

y = | -2(-2) |     →     y = | 4 |     →     y = 4       ⇒   (-2, 4)

y = | -2(-1) |     →     y = | 2 |     →       y =   2       ⇒   (-1, 2)    

y = | -2(0) |     →     y = | 0 |     →       y = 0         ⇒   (0, 0)

y = | -2(1) |   c →     y = | -2 |     →     y =   2         ⇒   (1, 2)    

y = | -2(2) |     →     y = | - 4 |     →     y =   4         ⇒   (2, 4)