Question

Jade is considering taking out a 14-year-old loan with monthly payment of $195 at an APR of 2.9% compounded monthly at this equates to a loan of 26,898 with $.98 assuming that Jade monthly payment and length of the loan remain fixed which of these is the correct statement

Answer 1

Jade will pay a total of $33,480 over the 14-year loan period.

Step-by-step explanation:

To calculate the correct statement, we need to determine the total amount Jade will pay over the 14-year loan period. The monthly payment is $195 and the loan amount is $26,898. To calculate the total amount paid, we need to multiply the monthly payment by the number of months in 14 years.

Total amount paid = Monthly payment * Number of months

Total amount paid = $195 * 14 * 12

Total amount paid = $33,480

Therefore, the correct statement is that Jade will pay a total of $33,480 over the 14-year loan period.