The total payback after 2 years is $3799.20.
Given
An amount of $3,500 loan at 8% annual interest with monthly payments for two years.
Monthly payback;
The formula is used to total payback is;
[tex]\rm M =\dfrac{Pm(1+m)^{na}}{(1+m)^{na}-1}[/tex]
Where M is the monthly payment, m is the monthly interest rate, n is 12, and a is the number of years.
Substitute all the values in the formula;
[tex]\rm M =\dfrac{Pm(1+m)^{na}}{(1+m)^{na}-1}\\\\ M =\dfrac{3500\times \dfrac{0.08}{12}(1+ \dfrac{0.08}{12})^{12\times 2}}{(1+ \dfrac{0.08}{12})^{12\times 2}-1}\\\\ M = \rm \dfrac{23.33\times 1.17}{1.17-1}\\\\M=\dfrac{27.29}{0.17}\\\\M=158.30[/tex]
Therefore,
The total payback will be;
[tex]= 158.30 \times 24\\\\=3,799.20[/tex]
Hence, the total payback after 2 years is $3799.20.
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https://brainly.com/question/12004369
