Question

Jameson has $4,300 in credit card debt with 14% interest that he wants to pay off in 24 months. He will need to make monthly payments of $206.46 each month. Calculate the total cost of repayment and the interest Jameson will pay.

Answer 1

Answer:

The answer to this question can be defined as follows:

net paid interest = $ 655. 04

Total cost = $ 4955.04

Step-by-step explanation:

Given values:

loan amount = $ 4,300

monthly payment = $ 206.46

interest rate = 14 %

Time = 2 years

Solution:

yearly payment = one month amount × 12

1 year payment = $ 206.46 × 12

1 year payment =  $2477.52

because Time is 2 year then payment is = $2477.52 *2

2 year payment = $ 4955.04

net interest paid  = total payment - loan amount

                            = $ 4955.04 - $4300

                            = $ 655.04

total  cost = $ 4955.04

net paid interest = $ 655.04