Answer:
Explanation:
Given:
- Loan amount PV = $60000
- Interest rate r = 3% PA
- Time t = x years
- Number of compounds n = 12
- Monthly payment PMT = $1100
FV is:
- 60000*(1 + (3/100)/12)^(12x) = 60000*(1.0025)^(12x)
Which is same as total payment:
Solve the following by graphing:
- 60000*(1.0025)^(12x) = 1100*12*x
See attached
The solution is:
- x = 5.333 = 5 1/3 years = 5 years 4 months = 64 months
Total payment:
The amount of interest:
- I = FV - PV = 70395.95 - 60000 = $10395.95