Question

Austin qualified for a $30,000 loan with 7.49% interest in order to buy a new ski boat. The term of his loan is 10 years and his monthly payments are $355.95. Find the amount of INTEREST Austin will pay. Group of answer choices

Answer 1

$12,714

Explanation:

Loan Amount=$30,000

Monthly Payment =$355.95.

Number of Payment Period = 10 Years X 12 Months =120 Months

Total Payment to be made by Austin =120 X 355.95=$42,714

Therefore:

The interest Austin will pay=Total Payment-Loan Amount

=$42,714-30,000

=$12,714