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Advocard [28]
2 years ago
11

Cheri took out a loan for $14,350. The loan term was 3 years and Cheri’s payments were $625.77 per month. Since Cheri had filed

for bankruptcy several years prior, she ended up paying a higher interest rate. With a better credit rating, her payments could have been $431.21 per month. How much more in interest did Cheri end up paying for her loan because of her bankruptcy?
a.
$5,836.80
b.
$2,334.72
c.
$8,624.16
d.
$7,004.16


The answer is D
Mathematics
2 answers:
torisob [31]2 years ago
6 0

Per month payment of Cheri = $625.77

So, total payments made in 3 years = 625.77\times36=22527.72

As mentioned, Cheri had filed for bankruptcy several years prior, she ended up paying a higher interest rate. With a better credit rating, her payments could have been $431.21 per month.

So, If she would have paid 431.21 per month for 3 years, in total she would have paid =431.21\times36=15523.56

Hence, Cheri paid = 22527.72-15523.56=7004.16 more

So, Cheri paid option D = $7004.16 more.

melamori03 [73]2 years ago
3 0

Answer:

You are correct.

Step-by-step explanation:

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