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?

Answer 1

The answer is 292

Explanation:

Answer 2

$292 in fees

Explanation:

First, calculate the total payments Jan made over the 4 years

$355 x 4 payments per year x 4 years = $5,680

Then, calculate the total payments made and subtract the amount of Principal and Interest paid from the total payments made.

$5,680 - $5,388 = $292

$292 is the FEE for the loan

$4,700 is the PRINCIPAL for the loan

$688 is the INTEREST for the loan