76.0k views
1 vote
Total cost and interest for a loan

Breanna
Espanol
To purchase $13,900 worth of lab equipment for her business, Amy made a down payment of $1900 and took out a business
loan for the rest. After 3 years of paying monthly payments of $365.07, she finally paid off the loan.

User Venise
by
4.3k points

1 Answer

4 votes

Answer:

The total cost was $ 15,042.52, and the interest percentage applied on the loan was 8.22%.

Explanation:

Given that to purchase $ 13,900 worth of lab equipment for her business, Amy made a down payment of $ 1900 and took out a business loan for the rest, and after 3 years of paying monthly payments of $ 365.07, she finally paid off the loan to determine the total cost and interest applied on the loan, the following calculation must be made:

(365.07 x 12 x 3) + 1900 = Total cost

4,380.84 x 3 + 1900 = Total cost

13,142.52 + 1900 = Total cost

15,042.52 = Total cost

13900 = 100

15042.52 = X

15042.52 x 100/13900 = X

1,504,252 / 13,900 = X

108.22 = X

Therefore, the total cost was $ 15,042.52, and the interest percentage applied on the loan was 8.22%.

User Dr Joe
by
4.7k points