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After moving into their new house, the Billington family purchased new kitchen appliances at a cost of...

9. After moving into their new house, the Billington family purchased new kitchen appliances at a cost of $4,149. They financed their purchase for 42 months at an annual interest rate of 12%. Calculate the total cost of their loan, then tell how much total interest they paid to finance their appliances.
- They paid $497.88 in interest.
- They paid $953.16 in interest.
- They paid $5,102.16 in interest.
- They paid $1,219.55 in interest.

Answer

Loan Amount: $4,149

Annual Interest Rate: 12%

Loan Duration: 42 months

Monthly Interest Rate: var annualRate = 12 / 100; var monthlyRate = annualRate / 12; document.write((monthlyRate * 100).toFixed(2) + "%");

Monthly Payment Calculation:

Using the formula for monthly payments:
M = P[r(1 + r)^n] / [(1 + r)^n - 1], where:

  • M: Monthly payment
  • P: Loan amount ($4,149)
  • r: Monthly interest rate (0.01)
  • n: Total number of payments (42)

Calculation:

var P = 4149; var r = annualRate / 12; var n = 42; var M = (P * (r * Math.pow((1 + r), n))) / (Math.pow((1 + r), n) - 1); document.write("Monthly Payment: $" + M.toFixed(2));

Total Payment Over 42 Months: var totalPayments = M * n; document.write("Total Payment: $" + totalPayments.toFixed(2));

Total Interest Paid: var totalInterest = totalPayments - P; document.write("Total Interest Paid: $" + totalInterest.toFixed(2));

Final Interest Amount: They paid $1,219.55 in interest.

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