Question

Borrowed $30000 four year loan at 7% what’s monthly payment? And what’s the intrest I will pay on loan?

Answer 1

given:

There are given that the Borrowed is $30000.

Step-by-step explanation:

To find the monthly amount, we need to use the formula:

`R=(P)/(1-(i+1)^(-n))`

Where,

`\begin{gathered} P=30000 \\ r=0.07 \\ m=12\text{ Thenn} \end{gathered}`
`\begin{gathered} i=(r)/(m)=(0.07)/(12) \\ =0.0058 \end{gathered}`

Ans,

`\begin{gathered} n=mt=12(4) \\ =48 \end{gathered}`

Then,

From the formula:

`\begin{gathered} R=(Pi)/(1-(1+i)^(-n)) \\ R=(30000(0.0058))/(1-(1+0.0058)^(-48)) \\ R=(30,000(0.0058))/(1-(1.0058)^(-48)) \\ R=(30000(0.0058))/(0.24) \\ R=725 \end{gathered}`
`\begin{gathered} S.I=(P* r* t)/(100) \\ =(30000*7*4)/(100) \\ =4800 \end{gathered}`

Final answer:

Hence, the monthly payment is $725 and the interest will be: $4800