SOLUTION: I'm trying to determine the total cost of a loan, using the formula: Total cost = (sale price*rate)time + Sale Price My Question is what does the last sale price mean?

Algebra ->  Linear-equations -> SOLUTION: I'm trying to determine the total cost of a loan, using the formula: Total cost = (sale price*rate)time + Sale Price My Question is what does the last sale price mean?       Log On


   



Question 551287: I'm trying to determine the total cost of a loan, using the formula: Total cost = (sale price*rate)time + Sale Price My Question is what does the last sale price mean?

Answer by fcabanski(1391) About Me  (Show Source):
You can put this solution on YOUR website!
The last sale price is the same as the first one. For a loan it means the principle, which is the amount of the loan.


If C=Cost, P=Principle (sales price), t=time and r = interest rate it's C=P*r*t +P.


When repaying a loan you have to pay the interest (Prt) plus the original principle.


If you borrowed $10000, the interest was 5% (.05) per year and you repaid after one year you'd pay:


C = 10,000*.05*1 + 10,000 = $500 + $10,000 = $15,000.
That is the original loan amount plus $500 in interest.

If you need help understanding math so you can solve these problems yourself, then one on one online tutoring is the answer ($30/hr). If you need faster solutions with guaranteed detailed answers, then go with personal problem solving ($3.50-$5.50 per problem). Contact me at fcabanski@hotmail.com