Answer:
The monthly payments ≅ $258.335
The total interest of the loan ≅ $1400.095
Step-by-step explanation:
The rule of the monthly payments is
[tex]M.P=\frac{P(\frac{r}{n})}{1-(1+\frac{r}{n})^{-nt}}[/tex] , where
∵ You borrow $11000
∴ P = 11000
∵ It will be for 4 years
∴ t = 4
∵ The rate is 6%
∴ r = 6% = [tex]\frac{6}{100}[/tex] = 0.06
∵ It is a monthly payment
∴ n = 12
→ Substitute these values in the rule above
∴ [tex]M.P=\frac{11000(\frac{0.06}{12})}{1-(1+\frac{0.06}{12})^{-12(4)}}[/tex]
→ Use your calculator to find the answer
∴ M.P = 258.3353195
∴ The monthly payments ≅ $258.335
→ The total interest of the loan is the difference between the total
of the monthly payments and the initial amount
∴ The total interest of the loan = T.M.P - P
∵ The total of the monthly payments = M.P × t × n
∴ The total of the monthly payments = 258.3353195 × 4 × 12
∴ The total of the monthly payments = $12400.09534
∵ The initial amount P = $11000
∴ The total interest of the loan = 12400.09534 - 11000
∴ The total interest of the loan = 1400.095
∴ The total interest of the loan ≅ $1400.095
