Question 1133119
.


            In the post by @greenestamps, the formula for the monthly payment to repay the loan is presented incorrectly


                    (although the final answer is correct !)


            I came to provide a correct formula.


<pre>
              See this Wikipedia article <A HREF=https://en.wikipedia.org/wiki/Mortgage_calculator>Mortgage_calculator</A>

              https://en.wikipedia.org/wiki/Mortgage_calculator
</pre>


<U>Solution</U>


The formula for determining the amount of each payment, P, with a loan amount of A, an annual percentage rate of r, 
with payments n times per year, for t years, is


&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;{{{P}}} = &nbsp;{{{A*((r/n)/(1 - (1+r/n)^(-n*t)))}}}.


In this problem, A = 9000; r = 12.8% = 0.128; n = 12; and t = 5.  The amount of each payment is then  


&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;{{{P}}} &nbsp;= &nbsp;{{{9000*((0.128/12)/(1 - (1+0.128/12)^(-12*5)))}}} = $203.86.


The total amount Hannah will pay over the 60 months is 60 times that payment amount.