Question

If you make monthly payments of $1000\$ 1000 on a 1010-year loan, your total payments over the life of the loan amount to a. $1000\$ 1000. b. $100,000\$ 100,000. c. $120,000\$ 120,000.

Solution

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Answered 1 year ago
Answered 1 year ago
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To determine the total payments over the 1010 year loan with a monthly payment of $1000\$1000, first convert the given loan term into a month. Now, since there are 1212 months in a year,

12×10=12012\times10=120

Thus, there are 120120 months in 1010 years. Multiply it by the given monthly payment to get the total payments. It follows:

120×1000=120000120\times 1000=120000

Therefore, the total payment after 1010 years is $120000\$120000.

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