Question 1133119: Hannah has taken out a personal loan for $9000, which she will pay off with 60 monthly payments starting 1 month from now. The interest rate is 12.8% compounded monthly. Determine the total amount Hannah will pay over the 60 months?
Found 4 solutions by rothauserc, MathTherapy, greenestamps, ikleyn:
Answer by rothauserc(4718)   (Show Source):
You can put this solution on YOUR website! The compound interest formula is
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A = P * (1 +(r/n))^(nt), where P is the principal amount, r is the rate, n is the number of times the interest is compounded per year, t is the time in years and A is the future value of the loan including interest.
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For this problem, P is $9000, r is 0.128, n is 12 and t is 5 years(60/12)
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A = 9000 * (1 +(0.128/12))^(12*5) = 17010.5769 is approximately 17010.58
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The total amount Hannah will pay over the 60 months is $17,010.58
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Answer by MathTherapy(10552)  (Show Source):
You can put this solution on YOUR website! Hannah has taken out a personal loan for $9000, which she will pay off with 60 monthly payments starting 1 month from now. The interest rate is 12.8% compounded monthly. Determine the total amount Hannah will pay over the 60 months?
Monthly payment on a $9,000 loan for 5 years @ COMPOUND interest rate of 12.8%: $203.86.
Amount paid in 5 years, or in 60 months: 
IGNORE all other RIDICULOUS, NON-SIMILAR answers.
Answer by greenestamps(13200)  (Show Source):
You can put this solution on YOUR website!
This is not a problem about compound interest; it is a problem about repaying a loan.
The formula for determining the amount of each payment, A, with a loan amount of P, an annual percentage rate of r, with payments n times per year, for t years, is
In this problem, P = 9000; r = 12.8% = 0.128; n = 12; and t = 5. The amount of each payment is then what the other tutor shows, $203.86.
Then the total amount Hannah will pay over the 60 months is 60 times that payment amount.
Answer by ikleyn(52781)  (Show Source):
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