17
QuizMultiple Choice

Borrowing Money

Question 17 • 26-27 Ignite Technical Math-Financial Math - MA2007

Colin took out a loan with a principal of $32,800. After five years, the interest and principal totaled $48,872. If Colin made monthly payments of $816 for five years until the loan was paid off, how much did Colin pay in service charges?

Answer
A
$16,072
B
$88
C
$16,160
D
$163

Explanation

Colin made 5 × 12 = 60 monthly payments, totaling 60 × $816 = $48,960. The principal and interest together totaled $48,872, so the service charges were $48,960 − $48,872 = $88. The correct choice is $88.

AI-written and checked against the verified answer.

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