159k views
5 votes
Tyler took out a five-year loan with a principal of $12,000. He made monthly payments of $215 for the entire period, at which point the loan was paid off. How much did Tyler pay in interest?

Responses

$15

$60

$75

$900

User Anakin
by
8.6k points

1 Answer

2 votes

Answer:

D, $900

Explanation:

and monthly payments of $215, we can use the following formula:

Total interest = Total amount paid - Principal

where:

Total amount paid = Monthly payment x Number of payments

Number of payments = Number of years x 12

In this case, Tyler made monthly payments of $215 for 5 years, which is a total of 5 x 12 = 60 payments.

Substituting these values into the formula, we get:

Total amount paid = $215 x 60 = $12,900

Total interest = $12,900 - $12,000 = $900

Therefore, Tyler paid $900 in interest over the five-year period. The answer is option D: $900.

User Rokibul Hasan
by
8.3k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories