Question 1190634
<font color=black size=3>
Question 4


L = current balance or amount owed = $13,864.82
i = interest rate per month = 0.19/12 = 0.0158333333 (approximate)
n = number of months = 5*12 = 60


P = monthly payment
P = (L*i)/( 1-(1+i)^(-n) )
P = (13,864.82*0.0158333333 )/( 1-(1+0.0158333333 )^(-60) )
P = 359.661071982472 which is approximate
P = 359.66
His minimum payment is $359.66 per month.


Total paid back = P*n 
Total paid back = 359.66*60
Total paid back = 21,579.60


Total interest = (Total paid back) - (amount owed)
Total interest = (21,579.60) - (13,864.82)
Total interest = $7,714.78




Answers: 
Min payment = <font color=red>$359.66 per month</font>
Total interest  = <font color=red>$7,714.78</font>


=========================================================


Question 5


L = current balance or amount owed = $13,864.82
i = interest rate per month = 0.0975/12 = 0.008125 (exact)
n = number of months = 5*12 = 60


P = monthly payment
P = (L*i)/( 1-(1+i)^(-n) )
P = (13,864.82*0.008125 )/( 1-(1+0.008125 )^(-60) )
P = 292.883835942766 which is approximate
P = 292.88
His minimum payment is $292.88 per month when going through the bank at a lower interest rate.
Clearly this is a better option and he should take it, assuming he qualifies for the personal line of credit.


Total paid back = P*n 
Total paid back = 292.88*60
Total paid back = 17,572.80


Total interest = (Total paid back) - (amount owed)
Total interest = (17,572.80) - (13,864.82)
Total interest = $3,707.98



Answers: 
Min payment = <font color=red>$292.88 per month</font>
Total interest  = <font color=red>$3,707.98</font> 
</font>