Question

Help with mathematics and finance?

Answer 1

Option B is right

Explanation:

Given that loan amount is for 80000 dollars which attract 4.8% compounded monthly and tenure is 5 years.

So as such final amount to be paid would be

`80000(1+(4.8)/(1200))^(12*5)  \\=80000(1.0048)^(60)`...I

Since equal monthly instalment is paid to the tune of 519.17 this will be treated as recurring deposit with same interest. Hence this will be reduced for interest calculation purpose.

`519.17((1-(1+0.0048)^(60) )/(0.0048)`...II

Hence net amount unpaid would be as in option B , the sum of I and II