Myrtle took out a 3-year loan for 2050$ at a computer retailer to be paid back with monthly payments at 12% apr compounded monthly. If the loan offers no payments for the first 5 months about how much in total will myrtle pay in interest for the loan? A. 466.27 B. 81.17 C. 246 D. 104.57

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Mathematics

Ezequiel Gardner

6 June, 08:57

Myrtle took out a 3-year loan for 2050$ at a computer retailer to be paid back with monthly payments at 12% apr compounded monthly. If the loan offers no payments for the first 5 months about how much in total will myrtle pay in interest for the loan? A. 466.27 B. 81.17 C. 246 D. 104.57

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Ball · Answer 1

The answer is letter C. $246. This is calculated based on 12% APR from the total amount of $2,050. The amount $2,050 is multiplied by 0.12 that will result to $246 for payment of interest for the loan, even though the loan offers no payments for the first 5 months as APR is calculated on a yearly basis.