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by the time janet pays off her entire loan, how much interest will she have paid

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michell96

When Janet pays off her entire loan, she will have paid the fixed value of the interest multiplied by the number of payments she made.

When a person borrows money from a bank, they must take certain aspects into account such as:

  • Debt capacity.
  • Interest.
  • Estimated payment time.
  • Way to pay.

In the case of interest, it is an additional value that is paid to the bank in exchange for lending the money; interest can be understood as the bank's profit from lending the money.

According to the above, when someone borrows money each month, she must pay a part of the money that the bank loaned her and the interest, which is a small amount that corresponds to a percentage of the total value. For example.

Janet borrowed $ 10,000 and the bank clerk grants her the loan and tells her that the interest is 1%. This means that Janet must pay the $ 10,000 and additionally must pay 1% of this amount.

To find out how much Janet should pay in interest, we divide $ 10,000 by 100 and multiply by 1.

  • $ 10,000 / 100 × 1 = $ 100

According to the above, Janet must pay $ 100 interest to the bank for the loan they made. This payment is generally divided into the number of months in which Janet will pay the loan. For example 12 months.

  • $ 10,000/12 = $ 833.3
  • $ 100/12 = $ 8.3

  • $ 833.3 + $ 8.3 = $ 641.6

Janet will pay $ 641.6 each month of which $ 8.3 corresponds to interest and $ 833.3 to the loan.

Note: This question is incomplete because it does not include information about Janet's loan. However, you can answer with a practical example.

Learn more in: https://brainly.com/question/11339060

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