Final answer:
To calculate the total cost of the loan, use the formula to find the monthly payment amount and multiply it by the total number of payments. The total cost is $191,958.16.
Step-by-step explanation:
To find the total cost of the loan, we need to calculate the monthly payment amount and the total number of payments. The formula to calculate the monthly payment amount is:
P = (r(PV))/(1-(1+r)^(-nt))
Where P is the monthly payment, r is the monthly interest rate, PV is the present value (loan amount), n is the total number of payments, and t is the number of years.
Using the given information, we can calculate the monthly payment amount, which is $726.31. Multiplying this by the total number of payments, which is (30-8)*12 = 264, we get the total cost of the loan to be $191,958.16.
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