Respuesta :
The total interest a borrower will pay over the course of the debt is called the interest cost. In this case interest cost will be 83.25.
The total interest a borrower will pay over the course of the debt is called the interest cost. Interest costs should be reduced through negative points and refunds. A loan analysis should also take opportunity costs, tax advantages, and closing fees into account in addition to interest charges. Mortgages, student, vehicle, and credit card loans are just a few of the consumer financial responsibilities that involve interest costs. Corporate borrowings such as commercial paper, revolving lines of credit, long-term bank loans, bonds, and lease costs are all heavily influenced by interest charges, which are another significant factor to take into account.
By multiplying the principal loan amount by the interest rate and the loan duration, you may find your total interest.
In this case interest cost can be calculated:
- I = Prt
- I = (1500)(.111)(6/12) = 83.25
- Total Cost = Down Payment + Principal Borrowed + Interest
- Total Cost = 0 + 1500 + 83.25 =1583.25
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