Question

What is the amount paid for the loan for $4800 at 9.9% for 4 years

Answer 1

Total amount paid = 5,832.48

Total Cost = [rate * principal * # payments] / (1-(1+rate)^ -# pmts)

rate = 9.9 / 1,200 = 0.00825

Total Cost = [0.00825 * 4,800 * 48] / (1 -(1.00825)^-48)

Total Cost = 1,900.80 / 1 - 0.6741009317

Total Cost = 1,900.80 / 0.3258990683

Total Cost = 5,832.48

Source: 1728.com/loanfrm4.htm

Explanation:

Answer 2

$1900.80 in interest on this $4800.00 loan

Explanation:

By "amount paid" you most likely mean "amount of interest owed."

This would be i = p * r * t, and here,

i = $4800*0.099*4 = $1900.80.