Answer:
Monthly payments = $ 289.992
Total interest = $ 2399.520
Step-by-step explanation:
Given formula of monthly payments,
[tex]PMT=\frac{P(\frac{r}{n})}{1-(1+\frac{r}{n})^{-nt}}[/tex]
Where,
P = present value,
r = annual interest rate,
n = number of months in a year ( i.e. 12 months ),
t = number of years,
Here,
P = $ 15,000,
t = 5 years,
r = 6% = 0.06
Hence, the monthly payment would be,
[tex]PMT=\frac{15000(\frac{0.06}{12})}{1-(\frac{0.06}{12})^{-60}}[/tex]
[tex]=\frac{15000(0.005)}{1-(0.005)^{-60}}[/tex]
[tex]\approx \$ 289.992[/tex]
Also, the total interest of the loan = monthly payment × number of months - present value of loan
= 289.992 × 60 - 15000
= $ 2399.520
