Question

# If you make monthly payments of $\ 1000$ on a $10$-year loan, your total payments over the life of the loan amount to a. $\ 1000$. b. $\ 100,000$. c. $\ 120,000$.

Solution

Verified
Step 1
1 of 2

To determine the total payments over the $10$ year loan with a monthly payment of $\1000$, first convert the given loan term into a month. Now, since there are $12$ months in a year,

$12\times10=120$

Thus, there are $120$ months in $10$ years. Multiply it by the given monthly payment to get the total payments. It follows:

$120\times 1000=120000$

Therefore, the total payment after $10$ years is $\120000$.