Answer:
The monthly payments $193.33.
The total interest for the loan $1,599.8.
Step-by-step explanation:
Given formula:
[tex]PMT=\frac{P\times \frac rn}{1-(1+\frac rn)^{-nt}}[/tex]
[tex]I[/tex]= (PMT×nt)-P
PMT= Monthly installment
P= Present value
r= Rate of interest
t= Time
n= Number of interest per year.
Here,
P=$10,000, r= 6%=0.06, t= 5 years, n=12
[tex]PMT=\frac{10000\times \frac {0.06}{12}}{1-(1+\frac {0.06}{12})^{-12.5}}[/tex]
[tex]\Rightarrow PMT=\frac{50}{1-(1.005)^{-60}}[/tex]
[tex]\Rightarrow PMT\approx 193.33[/tex]
[tex]I[/tex]= (PMT×nt)-P
=(193.33×12×5)-10,000
=11,599.8 -10,000
=$1,599.8
The monthly payments $193.33.
The total interest for the loan $1,599.8.
