Question

Given a loan balance of $30,000, an annual interest rate of 5.00%, a monthly payment of $566.14, for 5 years, what is the average monthly interest if the total loan plus interest is $33,968.00

Answer 1

Answer:

$66.14

Step-by-step explanation:

If the loan had no interest charge and were paid back over 5 years (60 months), each monthly payment would be ...

... $30,000/60 = $500.

The actual payment is $566.14, so the average monthly interest charge is ...

... $566.14 - 500.00 = $66.14