SOLUTION: Math
Tragedy struck, and you had to get an emergency surgery. But since you only work a minimum wage, “part-time” job (even though your boss makes you work 50 hours per wee
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Tragedy struck, and you had to get an emergency surgery. But since you only work a minimum wage, “part-time” job (even though your boss makes you work 50 hours per wee
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Question 1194352: Math
Tragedy struck, and you had to get an emergency surgery. But since you only work a minimum wage, “part-time” job (even though your boss makes you work 50 hours per week), your insurance is a bare-minimum policy and the surgery is not covered. You didn’t have time to set up a Go Fund Me for your surgery and had to take out a loan to pay for the surgery. Your monthly payment is $175 for 10 years and the loan charges 6% interest.
a) What was the cost of the surgery?
b) How much did you actually pay for the surgery? Answer by Theo(13342) (Show Source):
You can put this solution on YOUR website! the cost of the surgery was $15,762.85.
you paid a total of 120 * 175 = 21,000.
the included the cost of the surgery plus interest on the loan.
the loan was for 10 years * 12 = 120 months.
the interest rate of 6% per year was compounded monthly to be equal to .5% per month.
6% was the nominal annual interest rate on the loan.
the effective interest rate was 1.005^12 = 1.061677812 minus 1, times 100 = 6.1677812%.
this was equal to 6.17% when rounded to 2 decimal places.
i used the ti-ba-ii calculator.
a comparable calculator online can be found at https://arachnoid.com/finance/index.html
here's a display of the results from this calculator.
let me know if you have any questions.
theo
