To find Keith's total amount to repay the loan, we need to calculate the monthly payment and then multiply it by the number of months in 20 years.
First, let's calculate the monthly interest rate:
Monthly interest rate = Annual interest rate / 12
Monthly interest rate = 5.7% / 100 / 12 = 0.00475 (rounded to 5 decimal places)
Next, let's calculate the number of monthly payments:
Number of monthly payments = Number of years * 12
Number of monthly payments = 20 * 12 = 240
Now, let's calculate the monthly payment using the formula for the amortized loan:
Monthly payment = (loan amount * monthly interest rate) / (1 - (1 + monthly interest rate)^(-number of monthly payments))
Monthly payment = (50000 * 0.00475) / (1 - (1 + 0.00475)^(-240)) ≈ $361.80
Finally, let's calculate the total amount to repay the loan:
Total amount to repay = Monthly payment * Number of monthly payments
Total amount to repay = 361.80 * 240 ≈ $86,832
To help pay for art school Keith borrowed money from an online lending company he took out a personal amortized loan for $50,000 at an interest rate of 5.7% with monthly payments for a term of 20 years for each part do not round any intermediate computations and round your final answers to the nearest cent if necessary refer to the list of financial formulas if Keith pays the monthly payment each month for the full term find his total amount to repay the loan
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