Answer:
the expected monthly payment is approximately $212.47, the total payment over the 60-month term is $12,748.20, and the total interest paid is $2,748.20.
Explanation:
To calculate the monthly payment, total payment, and interest paid for an installment loan, we can use the loan payment formula:
Monthly Payment = P * (r * (1 + r)^n) / ((1 + r)^n - 1)
Where:
P = Principal amount (loan amount)
r = Monthly interest rate (annual interest rate divided by 12)
n = Total number of months
Given:
Principal amount (loan amount) = $10,000
Annual interest rate = 17%
Loan term = 60 months
First, we need to calculate the monthly interest rate and the total number of months:
Monthly interest rate = Annual interest rate / 12
r = 17% / 12 = 0.017 / 12 = 0.0014167
Total number of months = Loan term = 60 months
n = 60
Now, we can calculate the monthly payment using the loan payment formula:
Monthly Payment = $10,000 * (0.0014167 * (1 + 0.0014167)^60) / ((1 + 0.0014167)^60 - 1)
Using a calculator or spreadsheet software, the monthly payment comes out to be approximately $212.47.
To calculate the total payment, we can multiply the monthly payment by the total number of months:
Total Payment = Monthly Payment * Total number of months
Total Payment = $212.47 * 60
Total Payment = $12,748.20
To calculate the interest paid, we can subtract the principal amount from the total payment:
Interest Paid = Total Payment - Principal amount
Interest Paid = $12,748.20 - $10,000
Interest Paid = $2,748.20
Therefore, the expected monthly payment is approximately $212.47, the total payment over the 60-month term is $12,748.20, and the total interest paid is $2,748.20.