Final answer:
Alicia's monthly payment for 60 months is $325. Alicia pays back a total of $19,500. Alicia pays $4,500 in interest over the 60 months.
Step-by-step explanation:
To calculate Alicia's monthly payment for 60 months, we can use the formula:
Monthly Payment = (Loan Amount * Monthly Interest Rate) / (1 - (1 + Monthly Interest Rate)^-Number of Months)
Let's plug in the values:
Loan Amount = $15,000
Annual Percentage Rate = 6%
Monthly Interest Rate = 6% / 12 = 0.5%
Number of Months = 60
Substituting these values, we get:
Monthly Payment = (15000 * 0.005) / (1 - ((1 + 0.005)^-60)) = $325
Therefore, Alicia's monthly payment for 60 months is $325 (option b).
To calculate the total amount Alicia pays back to the lender over 60 months, we can simply multiply the monthly payment by the number of months:
Total Amount = Monthly Payment * Number of Months = $325 * 60 = $19,500
Therefore, Alicia pays back a total of $19,500 (option c).
To calculate the amount Alicia pays in interest over the 60 months, we can subtract the loan amount from the total amount she pays back:
Interest = Total Amount - Loan Amount = $19,500 - $15,000 = $4,500
Therefore, Alicia pays $4,500 in interest over the 60 months (option c).