Using an online loan calculator, determine the total cost, fixed monthly payment, and the total interest paid when repaying an auto loan of $15,000 with a 5% interest rate compounded monthly and a 60-month loan term. Round the answers to the nearest dollar.
To the nearest dollar, the total cost of repaying the loan is $______; the fixed monthly payment amount is $_____; the total amount of interest paid is $_____.
To find the total cost of repaying the loan, we need to calculate the monthly payment amount and then multiply it by the loan term (60 months).
Using an online loan calculator with an auto loan amount of $15,000, an interest rate of 5% compounded monthly, and a loan term of 60 months, the fixed monthly payment amount is approximately $283.
To find the total interest paid, we can multiply the monthly payment amount by the loan term and then subtract the loan amount.
Total interest paid = (Monthly payment amount * Loan term) - Loan amount
Total interest paid ≈ ($283 * 60) - $15,000
Total interest paid ≈ $16,980 - $15,000 ≈ $1,980
Therefore, the total cost of repaying the loan is approximately $16,980, the fixed monthly payment amount is approximately $283, and the total amount of interest paid is approximately $1,980.