Fun Loan: Borrowed $8000 over 36 mo's. 1st payment $37. Payments increase by $15/mo

Denis

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Feb 17, 2004
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1,445
Borrowed is $8000, over 36 months.
1st payment is $37.
Payments increase by $15 each month (so 36th payment = $562).
How much interest has been paid?
 

Subhotosh Khan

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Borrowed is $8000, over 36 months.
1st payment is $37.
Payments increase by $15 each month (so 36th payment = $562).
How much interest has been paid?
36*(37+562)/2-8000 =2762
 
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Subhotosh Khan

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Denis

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2 minutes over...what's your answer?
 

Denis

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C'mon ... c'mon ... no takers?
Subhotosh's 2762 is not correct...
 

Romsek

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Nov 16, 2013
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C'mon ... c'mon ... no takers?
Subhotosh's 2762 is not correct...
it's $2782

\(\displaystyle 15 \dfrac{36\cdot 35}{2}+36\cdot 37=10782 - 8000 = 2782\)
 
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Denis

Senior Member
Joined
Feb 17, 2004
Messages
1,445
it's $2782

\(\displaystyle 15 \dfrac{36\cdot 35}{2}+36\cdot 37=10782 - 8000 = 2782\)
Yepper!
SUM(arithmetic series) - amount borrowed

Rate turns out to be 1.284% monthly (or 15.408 APR cpd. monthly).
 
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