Question

WILL REWARD PLEASE HELP!!!!

Hilda took out a 1-year loan for $950 at a computer retailer to be paid back with monthly payments at a 24% APR, compounded monthly. If the loan offers no payments for the first 2 months, about how much in total will Hilda pay in interest for the loan?

A. $110.03
B. $150.30
C. $38.38
D. $228.00

Answer 1

$150.30

Explanation:

Answer 2

The EMI formula is :

`(p*r*(1+r)^(n) )/((1+r)^(n)-1 )`

P = 950

r =
`24/12/100=0.02`

n = 12

Now, putting the values in formula we get

`(950*0.02*(1+0.02)^(12) )/((1+0.02)^(12)-1 )`

`(950*0.02*(1.02)^(12) )/((1.02)^(12)-1 )`

EMI = $90 approx

So, she has to pay a total of
`12*90=1080` dollars

And interest incurred will be =
`1080-950=130` dollars