Question

Christina took out a $9,000 personal loan to remodel a portion of her home into an office for her new business. The loan has a 4-year term and a 5% interest rate. If Christina's monthly payments are $207.26, find the total cost of repayment and the interest Christina will pay on her loan.

Answer 1

Explanation:

Answer 2

-Total cost of repayment: $9,948.48

-Interest: $948.48

Explanation:

As Christina took a loan with a 4-year term with monthly payments of $207.26, you can find the total cost of repayment by multiplying the monthly payments for 48 months:

$207.26*48= $9,948.48

The interest that Christina will pay on her loan can be calculating by subtracting the principal from the total cost of repayment:

$9,948.48-$9,000= $948.48