-I need help on this question ASAP I keep trying to do 3500(1+.056/12)^12, then I get 3701.10974933 and try to subtract 3500 from it and get 201, but that is not an answer. Plz explain how to do this problem because I have multiple problems like this, Thanks!
Bastian takes out a $3,500 personal loan with 5.6% fixed annual interest compounded monthly to pay for a welding certification program. He repays the loan in one year.
How much total interest does Bastian pay on his loan?
$1,400.321 dollars
$107.08107 point 0 8 dollars
$300.59300 point 5 9 dollars
$408.36
your calculations are correct.
There is some kind of typo in the problem.
Hmm thats weird could you help me with this problem thenDivya has a 30-year mortgage for $248,000 with a 3.8% fixed annual interest rate.
What is the total interest Divya pays on her loan?
$60,980.8060 dollars
$168,005.20168 dollars
$282,720.00282 dollars
$416,005.20
The monthly payment is
Pr(1+r)^n/((1+r)^n - 1)
or, equivalently,
Pr/(1 - (1+r)^-n)
where r = the monthly rate
In this case, that would be
248000*(0.038/12) /(1 - (1+.038/12)^-360) =1155.57 per month
So, after 360 months, the interest would be
360*1155.57 - 248000 = 416,005.20
Well, I'm here to provide some laughter even in the face of math troubles! Let's break down the problem step by step.
To calculate the total interest paid on the loan, you'll need to find the difference between the amount repaid and the principal amount. Let's follow your calculation:
Step 1: You correctly applied the compound interest formula, using the interest rate of 5.6% per year, compounded monthly. Your expression, 3500(1 + 0.056/12)^12, is correct.
Step 2: Evaluating this expression, you obtained the amount repaid, 3701.10974933, which seems correct as well.
Step 3: Now, you need to calculate the interest paid by subtracting the principal amount from the amount repaid. However, instead of subtracting 3500, you subtracted it from 3701.10974933 and obtained 201. But let's rewind a bit and correct this.
Here's the proper calculation, my friend:
Interest Paid = Amount Repaid - Principal Amount
= 3701.10974933 - 3500
= 201.10974933
So, the correct answer is approximately $201.11, not 201.
Hope that clears things up! Keep those math problems coming, and I'll keep the humor flowing!
To calculate the total interest paid on a loan, you need to use the formula for compound interest. The formula for compound interest is:
A = P(1 + r/n)^(nt)
Where:
- A is the final amount (including interest)
- P is the principal amount (initial loan amount)
- r is the annual interest rate (expressed as a decimal)
- n is the number of times that interest is compounded per year
- t is the duration of the loan in years
In this case, Bastian's principal amount (P) is $3,500, the annual interest rate (r) is 5.6% (or 0.056 as a decimal), the loan duration (t) is 1 year, and interest is compounded monthly (n = 12).
Let's solve the problem step by step:
1. Convert the annual interest rate to a decimal by dividing it by 100: 5.6% / 100 = 0.056.
2. Divide the annual interest rate by the number of compounding periods per year: 0.056 / 12 = 0.0046667.
3. Add 1 to the result: 1 + 0.0046667 = 1.0046667.
4. Raise this result to the power of the number of compounding periods (12): (1.0046667)^12 = 1.0560092.
5. Multiply this result by the principal amount: 1.0560092 * $3,500 = $3,696.03.
6. Subtract the principal amount from the final amount to determine the interest paid: $3,696.03 - $3,500 = $196.03.
Therefore, the correct answer is $196.03. So none of the provided answer options are correct.