Question

Please help!

Loki's home repairs will cost him $1,200. The bank will give him a loan for the full amount at an interest rate of 21%. The bank expects a payment of $121 every month for 12 months

How much interest will Loki have paid when the loan balance is $0?

Answer 1

$1,200=to repair his home
21%=interest
$121=every month
12=month

21. X
——= ———-
100. 1200
Cross multiply
21*1200=25200
100*x=100x
25200/100=252
So Loki paid $252 interest

Answer 2

$252

Explanation:

IN order to calculate how much interest will Loki pay when he finishes paying his debt we just have to multiply the number of months by the monthly payment:

Number of months* Monthly payment= Total

12*121=1452

To the total he paid we just withdraw the amount he got loaned:

Total-loan=Interests

1452-1200=252.

So we know he at the end of the loan will have paid 252 dollars in interests.