an individual borrowed $65,000 at an APR of 3 %, which will be paid off with monthly payments of $348 for 21 years. Identify the amount borrowed, the annual interest rate, the number of payments per year, the loan term, and the payment amount.

Question

Mathematics

Kianna Flowers

1 September, 06:26

an individual borrowed $65,000 at an APR of 3 %, which will be paid off with monthly payments of $348 for 21 years. Identify the amount borrowed, the annual interest rate, the number of payments per year, the loan term, and the payment amount.

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Sonny Hendrix · Answer 1

Amount borrowed = $ 65,000,

Annual interest rate = 3%,

Number of payments per year = 12,

Loan term = 21 years,

Payment amount = $ 348

Step-by-step explanation:

Since, the amount of the loan is called amount borrowed,

Here, Amount borrowed = $ 65,000,

Also, APR = Annual percentage interest,

So, Annual interest rate = 3%,

∵ Loan has monthly payments of $ 348,

⇒ Monthly payment = $ 348,

Number of payments per year = 12, (1 year = 12 months),

Now, loan is for 21 years,

⇒ Loan term = 21 years,