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Sagot :
The formula for the monthly loan payment is given as
[tex]A\text{ = }P(\frac{r(1+r)^n}{(1+r)^n-1})[/tex]Where
P = loan amount ( initial principal) = $15000
A= Payment amount per period = ?
r = interest rate per period = (5/12) x (1/100) =0.0041667
n = total number of payments or periods = 4 years = 4 x 12 = 48 months
Substituting all these into the above equation gives
[tex]A\text{ =15000( }\frac{0.0041667(1+0.0041667)^{48}}{(1+0.0041667)^{48}-1})[/tex][tex]A\text{ = 15000(}\frac{0.0041667(1.0041667)^{48}}{(1.0041667)^{48}-1})[/tex][tex]\begin{gathered} A\text{ = }15000(\frac{0.0041667\text{ }\times1.2208973}{1.2208973\text{ - 1}}) \\ A=\text{ 15000(}\frac{0.005087112781}{0.2208973}) \end{gathered}[/tex][tex]\begin{gathered} A=15000(0.023029311) \\ A=\text{ \$345.4396759} \end{gathered}[/tex]So each month he pays $345.44 to the nearest cent
B)
The total interest for the loan is given by
Total amount paid over the total period of time - Original amount borrowed
Total amount paid over the total period of time = 345.44 x 48 months = $16581.12
The total interest of the loan hence = $16,581.12 - $15,000 = $1,581.12
The total loan interest to the nearest cent = $1,581.12
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