Maths - Weird Financial Question

[Holly-Kay]

Hi,
I come across a question in 'aunnuities and loan repayments' in my text book. It says:

"Lachlan borrows $24500 over 20 years at a reducible interest rate of 6.5% p.a.
He pays $1856 per month. What is the total paid on this loan?"
 
Thank you

[jamonwindeyer]

Hi,
I come across a question in 'aunnuities and loan repayments' in my text book. It says:

"Lachlan borrows $24500 over 20 years at a reducible interest rate of 6.5% p.a.
He pays $1856 per month. What is the total paid on this loan?"
 
Thank you

Hey Holly!! How old is your textbook? I'm fairly sure this question is based on a formula that you no longer receive (from the old study design that changed in 2014), so you don't need to know how to do it!

[stephanieazzopardi]

Hi,
I come across a question in 'aunnuities and loan repayments' in my text book. It says:

"Lachlan borrows $24500 over 20 years at a reducible interest rate of 6.5% p.a.
He pays $1856 per month. What is the total paid on this loan?"
 
Thank you

Hi Holly-Kay,

I assume that because they pay $1856 each month over 20 years (which equates to 12 x 20 = 240 months), the total amount they have to pay on the loan is just $1856 x 240 = $445 440.

Hope that makes sense!

[jamonwindeyer]

Hi Holly-Kay,

I assume that because they pay $1856 each month over 20 years (which equates to 12 x 20 = 240 months), the total amount they have to pay on the loan is just $1856 x 240 = $445 440.

Hope that makes sense!

Dammit... I fell for the red herring... You're awesome Steph sorry Holly please ignore silly me and listen to our incredible Gen Math lecturer!

[Holly-Kay]

Hi Holly-Kay,

I assume that because they pay $1856 each month over 20 years (which equates to 12 x 20 = 240 months), the total amount they have to pay on the loan is just $1856 x 240 = $445 440.

Hope that makes sense!

THANK YOU SO MUCH!!!!

[Holly-Kay]

Dammit... I fell for the red herring... You're awesome Steph sorry Holly please ignore silly me and listen to our incredible Gen Math lecturer!

Hahaha All Good. Thanks you.
Yes, she incredible   

[RuiAce]

Dammit... I fell for the red herring... You're awesome Steph sorry Holly please ignore silly me and listen to our incredible Gen Math lecturer!

When these questions appeared in ACTL I got annoyed lol