Question

How much interest was charged on $600.00, if the balance plus the interest was paid in 12 monthly installments of $56.007?

Answer 1

The total interest charged on a $600.00 loan, after paying in 12 monthly installments of $56.007, was $72.084.

Step-by-step explanation:

Calculating Interest on a Loan

To answer the student's question, we first need to calculate the total amount paid over the 12 months of installments. The monthly installment is $56.007, and when multipled by 12, it gives the total amount paid back which is 56.007 * 12 = $672.084. The original loan amount was $600, so to find out the total interest charged, we subtract the principal from the total amount paid: $672.084 - $600 = $72.084. Therefore, the interest charged was $72.084.