Christina took out a $9,000 personal loan to remodel a portion of her home into an office for her new business. The loan has a 4-year term and a 5% interest rate. If Christina's monthly payments are $207.26, find the total cost of repayment and the interest Christina will pay on her loan.

Question

Mathematics

Emily Ford

31 March, 19:15

Christina took out a $9,000 personal loan to remodel a portion of her home into an office for her new business. The loan has a 4-year term and a 5% interest rate. If Christina's monthly payments are $207.26, find the total cost of repayment and the interest Christina will pay on her loan.

+2

Answers (1)

Know the Answer?

Sandra Grimes · Answer 1

-Total cost of repayment: $9,948.48

-Interest: $948.48

Step-by-step explanation:

As Christina took a loan with a 4-year term with monthly payments of $207.26, you can find the total cost of repayment by multiplying the monthly payments for 48 months:

$207.26*48 = $9,948.48

The interest that Christina will pay on her loan can be calculating by subtracting the principal from the total cost of repayment:

$9,948.48-$9,000 = $948.48