It took Sebastian 10 years to repay a loan of $30,000, paying $296.66 per month. Jana paid off a loan for the same amount at the same interest rate in 5 years by paying $545.75 per month. How much more did Sebastian pay in interest than Jana?

Sagot :

Answer:

$2,854.2

Step-by-step explanation:

For Sebastian

It took Sebastian 10 years to repay a loan of $30,000, paying $296.66 per month.

1 year = 12 months

10 years = x

Cross Multiply

x = 10 × 12 = 120 months

He pays $296.66 monthly

Hence, the total amount he paid in 10 years =

$296.66 × 120

= $35,599.2

The loan he took was $30,000.

Hence, the interest Sebastian paid on his loan = $35,599.2 - $30,000

= $5,599.2

For Jana

Jana paid off a loan for the same

amount at the same interest rate in 5 years by paying $545.75 per month.

1 year = 12 months

5 years = x

Cross Multiply

x = 10 × 5 = 60 months

He pays $545.75 monthly

Hence, the total amount he paid in 5 years =

$545.75 × 60

= $32,745

The loan she took was $30,000.

Hence, the interest Sebastian paid on his loan = $32,745 - $30,000

= $2,745

How much more did Sebastian pay in interest than Jana?

This is calculated as:

The interest Sebastian paid - The Interest Jana paid

= $5,599.2 - $2,745

= $2,854.2

Therefore, Sebastian paid $2,854.2 more than Jana