Answer:
Explanation:
We solve by first, getting the quota Horatio pays on his loan:
[tex]PV \div \frac{1-(1+r)^{-time} }{rate} = C\\[/tex]
PV 12,450
time: 10 yearss x 12 months per year = 120
monthly rate: 7.3% / 12 = 0.006083333
[tex]12450 \div \frac{1-(1+0.006083333)^{-120} }{0.006083333} = C\\[/tex]
C $ 146.487
Now, we miltiply the quota by the quantity of payment ans subtract the principal to get the amount of interest paid:
quota times quantity of monthly payment: total amount paid
less principal: interest paid.
146.49 x 120 - 12,450 = 5,128,80
