Ashante takes a loan out of the bank. She pays her loan off in monthly installments, and after 36 months, she is debt free. What is the bank's profit from giving Ashante this loan?

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Answer 1

To calculate the bank's profit from giving Ashante a loan, we would typically need more specific information about the terms of the loan, including:

1. Loan Amount: The total amount Ashante borrowed.
2. Interest Rate: The annual interest rate applied to the loan.
3. Monthly Payment Amount: How much Ashante pays each month.
4. Loan Fees: Any additional fees associated with taking out the loan.

Without these details, we can't provide a specific answer about the bank's profit.

However, in general terms, the bank’s profit from the loan is calculated as follows:

1. Total Payments Received: This is the monthly payment multiplied by the number of months (in this case, 36 months).
2. Total Amount Lent: This is just the initial loan amount.
3. Profit: The bank’s profit is then calculated as: \[ \text{Profit} = \text{Total Payments Received} - \text{Total Amount Lent} \]

If you have the specific numbers, you can plug them into this formula to find the bank's profit.

If you need more detailed assistance or a theoretical example, please provide the missing information!