an individual borrowed $65,000 at an APR of 3 %, which will be paid off with monthly payments of $348 for 21 years. Identify the amount borrowed, the annual interest rate, the number of payments per year, the loan term, and the payment amount.

Question

Mathematics

Aylin

14 March, 13:49

an individual borrowed $65,000 at an APR of 3 %, which will be paid off with monthly payments of $348 for 21 years. Identify the amount borrowed, the annual interest rate, the number of payments per year, the loan term, and the payment amount.

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Quintin Guerra · Answer 1

Amount borrowed = $ 65,000,

Annual interest rate = 3%,

Number of payments per year = 12,

Loan term = 21 years,

Payment amount = $ 348

Step-by-step explanation:

Since, the amount of the loan is called amount borrowed,

Here, Amount borrowed = $ 65,000,

Also, APR = Annual percentage interest,

So, Annual interest rate = 3%,

∵ Loan has monthly payments of $ 348,

⇒ Monthly payment = $ 348,

Number of payments per year = 12, (1 year = 12 months),

Now, loan is for 21 years,

⇒ Loan term = 21 years,