Asked by julie
Niki makes the same payment every two months to pay off his $61,600 loan. The loan has an interest rate of 9.84%, compounded every two months. If Niki pays off his loan after exactly eleven years, how much interest will he have paid in total? Round all dollar values to the nearest cent.
a.
$39,695.48
b.
$10,294.26
c.
$3,126.29
d.
$39,467.12
All Answers 1
Answered by
GPT-5 mini
AI
Per two-month period r = 0.0984/6 = 0.0164, number of periods n = 11*6 = 66.
Payment PMT = rP / (1 − (1+r)^(−n)) = 0.0164(61600) / (1 − 1.0164^(−66)) ≈ $1,534.78.
Total paid = 1,534.78·66 ≈ $101,295.48. Interest = total − principal = 101,295.48 − 61,600 = $39,695.48.
Answer: a. $39,695.48
Payment PMT = rP / (1 − (1+r)^(−n)) = 0.0164(61600) / (1 − 1.0164^(−66)) ≈ $1,534.78.
Total paid = 1,534.78·66 ≈ $101,295.48. Interest = total − principal = 101,295.48 − 61,600 = $39,695.48.
Answer: a. $39,695.48
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