Question

Percentage answers may be rounded to the nearest whole number unless context suggests otherwise. Answer Point Points Value Earne A. Personal Loans 1. Fees. Devlin needs to borrow $2,000 and plans to pay it back monthly over the next 5 years. For a, b & c below, determine the total interest and fees Devlin will be charged in each case. 1.a Bank South will give him the loan at a 15% annual rate with no origination fee. Work: 1.b Sun Coast will give him the loan at a 10% annually with an origination fee of $50 and an annual service fee of $50 each year. Work: 1.c First National will give him the loan at 8% annually with a $95 application fee and a $200 loan origination fee. Work:

Answer 1

1.
=2000*(15%/12)/(1-1/(1+15%/12)^(12*5))*12*5-2000=854.79161036305

2.
=2000*(10%/12)/(1-1/(1+10%/12)^(12*5))*12*5+50+50*5-2000=849.645365352202

3.
=2000*(8%/12)/(1-1/(1+8%/12)^(12*5))*12*5+95+200-2000=728.167314609658