Fowler Chang
05/17/2024 · High School
If you make monthly payments of \( \$ 1,000 \) for 10 years, determine the total payment over the lifetime of the loan. \( \begin{array}{ll}\text { a. } \$ 10,000 & \text { c. } \$ 120,000 \\ \text { b. } \$ 100,000 & \text { d. } \$ 130,000\end{array} \)
UpStudy ThothAI Solution
Tutor-Verified Answer
Step-by-step Solution
To determine the total payment over the lifetime of the loan, you simply need to multiply the monthly payment by the number of payments.
Given:
- Monthly payment: \( \$1,000 \)
- Number of payments: 10 years
First, convert the number of years to months:
\( 10 \text{ years} \times 12 \text{ months/year} = 120 \text{ months} \)
Now, multiply the monthly payment by the number of payments:
\( \$1,000 \text{ per month} \times 120 \text{ months} = \$120,000 \)
So, the total payment over the lifetime of the loan is \( \$120,000 \).
The correct answer is:
\( \text{c. } \$120,000 \)
Quick Answer
The total payment is \( \$120,000 \).
Therefore, the correct answer is c. \( \$120,000 \).
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