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Anne takes out an $8,000 loan to buy a car. She chooses the 8-year loan at 9.8% interest, and will pay $120.55 per month. What is the total repayment on the loan?

User Fili
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Final answer:

The total repayment on the $8,000 car loan with a 9.8% interest rate over 8 years, with monthly payments of $120.55, is $11,572.80.

Step-by-step explanation:

The student has taken out an $8,000 loan to buy a car with an interest rate of 9.8% for 8 years, with a monthly payment of $120.55. To find the total repayment on the loan, we'll multiply the monthly payment by the number of months in the term of the loan:

120.55 (monthly payment) × 12 (months per year) × 8 (years) = total repayment.

By calculating this, we find the total repayment is:

120.55 × 12 × 8 = $11,572.80.

The total repayment amount includes both the principal and the interest paid over the life of the loan.

User ConditionRacer
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you multiply all of them together and then dived by 100 and that's your answer
User Antony Sargent
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