Question

The principal on jan’s loan was $4,700, but by the time she had paid it off after four years, the interest and principal totaled $5,388. if jan made regular quarterly payments of $355 until the loan was paid off, how much did jan pay for service charges? a. $292 b. $688 c. $980 d. $18 please select the best answer from the choices provided a b c d

Answer 1

Let's break down the problem step by step to find out how much Jan paid for service charges:

1. Jan's loan principal was $4,700.
2. She paid it off after four years, and the total amount paid was $5,388.
3. She made regular quarterly payments of $355.

First, calculate the total amount paid for the loan:
Total payments = Quarterly payments × Number of quarters
Total payments = $355 × 4 quarters/year × 4 years = $5,680

Now, let's find out the service charges:
Service charges = Total payments - Loan principal
Service charges = $5,680 - $4,700 = $980

So, Jan paid $980 for service charges.

The correct answer is (c) $980.

That’s about it, you’re welcome:)