Answer:
The correct option is b. The total amount paid by Mari is 16602.12.
Step-by-step explanation:
The principal amount is $15000, rate of interest is 6.71% and the number of months is 36.
The formula for monthly installment is
[tex]A=P\times \frac{\frac{r}{12}}{1-(1+\frac{r}{12})^{-12t}}[/tex]
Where, P is principal amount, r is rat of interest, t is number of years.
Mari monthly installment is
[tex]A=\frac{15000\left(\frac{0.0671}{12}\right)}{1-\left(1+\frac{0.0671}{12}\right)^{-36}}[/tex]
[tex]A=461.17[/tex]
Her monthly installment is $461.17. Since the lifetime of the loan was 36 months, therefore the total amount paid by Mari is
[tex]461.17\times 36=16602.12[/tex]
Therefore the correct option is b. The total amount paid by Mari is 16602.12.
