SOLUTION: The monthly payments on a 10-year loan of $20,000 at 6.3% interest are $225.07. (a) What is the total amount paid over the 10 years? (b) What is the total amount of interest pa

Algebra ->  Finance -> SOLUTION: The monthly payments on a 10-year loan of $20,000 at 6.3% interest are $225.07. (a) What is the total amount paid over the 10 years? (b) What is the total amount of interest pa      Log On


   

Question 1150342: The monthly payments on a 10-year loan of $20,000 at 6.3% interest are $225.07.
(a) What is the total amount paid over the 10 years?
(b) What is the total amount of interest paid?
Answer by Theo(13342) About Me  (Show Source):
You can put this solution on YOUR website!
10 years * 12 months per year = 120 months.
$225.07 * 120 = $27,008.4 = total amount of payments on the loan.
the loan is for $20,000
$27,008.4- $20,000 = $7,008.4 = total amount of interest paid on the loan.