a) The monthly payment for Sofia, who is considering the 5-year loan of $6,000 at an interest rate of 7%, would be $118.80.
b) The total number of monthly payments that Sofia would make for the 5-year loan of $6,000 at an interest rate of 7% is 60.
c) The total finance charge for Sofia, who is considering the 5-year loan of $6,000 at an interest rate of 7%, would be approximately $1,128.00.
How is monthly payment calculated?
The monthly payment to pay off a mortgage can be calculated using an online finance calculator as below.
Data and Calculations:
Loan amount = $6,000
Maturity period = 5 years
Interest rate = 7%
N (# of periods) = 60 months (5 years x 12)
Results:
Monthly Payment = $118.81 ($34.02 + $84.79)
Mortgage Payment = $7,128.60 ($118.81 x 60)
Total of 60 Mortgage Payments $7,128.60
Total Interest = $1,128.60 ($7,128.60 - $6,000)
Monthly Amortization Schedule (for the first 3 months)
Date Beginning Balance Interest Principal Ending
Repayment Balance
1 3/2022 $6,000.00 $35.00 $83.81 $5,916.19
2 4/2022 $5,916.19 $34.51 $84.30 $5,831.90
3 5/2022 $5,831.90 $34.02 $84.79 $5,747.11
Learn more about calculating monthly payments at https://brainly.com/question/24576997
