Question

100 POINTS IF YOU CAN HELP ME!!

Use the equation below to calculate the total cost of a payday loan for #6-8.

\Total Cost = Loan amount + finance charge ( 1 + Number of rollovers or renewals). Keep in mind, this does not include the initial loan cost, just the interest.


#6. Toby takes out a payday loan to pay for a medical bill that costs $450. The payday lender charges him $50 every two weeks. Toby has to roll over the loan 4 times before he can finally pay it off. What was the total cost of his loan?

7. Tabitha takes out a payday loan to pay for her son's emergency room bill that costs $300. The payday lender charges her $40 every two weeks. She has to roll over the loan 6 times before she can finally pay it off. What is the total cost of her loan?

8. Sariah takes out a payday loan to get a new set of tires in order to pass inspection. The bill is $500. She needs her car to get to and from work but does not have enough money in her savings to cover the bill so she takes out a payday loan. The payday loan will cost her $45 every two weeks. She has to roll over 7 times. What was the total cost of her loan?

Answer 1

#6.

Loan amount = $450

Finance charge = $50 every two weeks

Number of rollovers or renewals = 4

Total Cost = 450 + (50 x (1 + 4))

Total Cost = 450 + 250

Total Cost = $700

The total cost of Toby's loan is $700.

#7.

Loan amount = $300

Finance charge = $40 every two weeks

Number of rollovers or renewals = 6

Total Cost = 300 + (40 x (1 + 6))

Total Cost = 300 + 280

Total Cost = $580

The total cost of Tabitha's loan is $580.

#8.

Loan amount = $500

Finance charge = $45 every two weeks

Number of rollovers or renewals = 7

Total Cost = 500 + (45 x (1 + 7))

Total Cost = 500 + 360

Total Cost = $860

The total cost of Sariah's loan is $860.

Answer 2

Explanation:

Toby's loan amount is $450 and the finance charge is $50 every two weeks. He rolls over the loan 4 times.

Total cost = $450 + ($50 x (1 + 4))

Total cost = $450 + ($50 x 5)

Total cost = $450 + $250

Total cost = $700

Therefore, the total cost of Toby's payday loan is $700.

Tabitha's loan amount is $300 and the finance charge is $40 every two weeks. She rolls over the loan 6 times.

Total cost = $300 + ($40 x (1 + 6))

Total cost = $300 + ($40 x 7)

Total cost = $300 + $280

Total cost = $580

Therefore, the total cost of Tabitha's payday loan is $580.

Sariah's loan amount is $500 and the finance charge is $45 every two weeks. She rolls over the loan 7 times.

Total cost = $500 + ($45 x (1 + 7))

Total cost = $500 + ($45 x 8)

Total cost = $500 + $360

Total cost = $860

Therefore, the total cost of Sariah's payday loan is $860