ou have just signed for a car loan with 48 monthly payments of $500 (principal and interest) at an annual interest rate (APR) of 15%. Total interest cost (paid over the life of the loan) is approximately __________ percent of the loan.

ou have just signed for a car loan with 48 monthly payments of $500 (principal and interest) at an annual interest rate (APR) of 15%. Total interest cost (paid over the life of the loan) is approximately __________ percent of the loan.

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter7: Using Consumer Loans

Section: Chapter Questions

Problem 6FPE

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Calculating the Return On A Loan

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You have just signed for a car loan with 48 monthly payments of $500 (principal and interest) at an annual interest rate (APR) of 15%. Total interest cost (paid over the life of the loan) is approximately __________ percent of the loan.

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Step 2: Calculation of loan value(P)

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Step 3: Calculation of Total interest cost % of loan

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