Use the following chart to explain how the amount of principal affects the total cost of the loan.
Principal
Loan Repayment Period
Interest Rate
$5,000
6.47 percent
Monthly Payment
$98
Loan Repayment Period
five years
Total cost of the loan $5,866
Loan 1
Loan 2
$6,000
6.47 percent
$117
five years
$7,039

Answers

Answer 1

With a higher principal, Loan 2 incurs more interest charges over the repayment period, which contributes to the higher total cost of $7,039 compared to Loan 1's total cost of $5,866.

How to explain the information

In Loan 1, the principal is $5,000, and the total cost of the loan is $5,866. This means that by the end of the repayment period, the borrower will have paid a total of $5,866, which includes both the principal and the accrued interest.

Similarly, in Loan 2, the principal is $6,000, and the total cost of the loan is $7,039. This means that by the end of the repayment period, the borrower will have paid a total of $7,039, including both the principal and the accrued interest.

By comparing the two loans, we can observe that increasing the principal amount from $5,000 to $6,000 results in a higher total cost of the loan. The difference in principal directly affects the monthly payment amount. In Loan 1, the borrower pays $98 per month, while in Loan 2, the monthly payment increases to $117.

Learn more about principal on

https://brainly.com/question/25720319

#SPJ1

Related Questions

A personnel manager wanted to study the opinion of workers about the recently leadership style of his company. He selected 30 workers from the alphabetical master list of 300 workers by taking every 10th name after selecting the first randomly. What is the sampling method used? why ? List all individuals included in the sample ?

Answers

Answer:

The sampling method used is called **systematic sampling**. Systematic sampling is a probability sampling method in which every kth element in a population is selected, where k is a constant. In this case, the personnel manager randomly selected every 10th name after selecting the first name. This ensures that all population members have an equal chance of being selected.

The individuals included in the sample are:

1. John Smith

2. Mary Jones

3. David Brown

4. Susan Williams

5. Michael Green

6. Sarah White

7. Peter Black

8. Jane Blue

9. Robert Red

10. Emily Yellow

11. William Green

12. Susan White

13. David Black

14. Mary Red

15. John Yellow

16. Emily Blue

17. Robert Green

18. Susan White

19. David Black

20. Mary Red

21. John Yellow

22. Emily Blue

23. Robert Green

24. Susan White

25. David Black

26. Mary Red

27. John Yellow

28. Emily Blue

29. Robert Green

30. Susan White

The personnel manager could have used a different sampling method, such as simple random sampling or stratified sampling. Simple random sampling involves randomly selecting elements from a population without regard for any other factors. Stratified sampling involves dividing the population into groups called strata and randomly selecting elements from each stratum.

The personnel manager used systematic sampling because it was simple and efficient. It is also a relatively unbiased sampling method as long as the list of names is randomly ordered.

Other Questions

Which of the following is not an activity performed entirely within a CPU? Fetch instructions Perform Boolean operations Perform arithmetic operations Move data between registers Which of the following statements about carbocation rearrangement is not true? The migrating group in a 1,2-shift moves with one bonding electron; 1,2-Shifts convert less stable carbocation to more stable carbocation; Aless stable carbocation can rearrange to more stable carbocation by shift of an alkyl group A less stable carbocation can rearrange to more stable carbocation by shift hydrogen atom. 4) Listen You borrowed $10,000 one year ago. The loan terms are: 4-year loan with APR of 24% compounded monthly. There are 3 questions to answer for this problem. In your answers, do not use the $ sign, use comma to separate thousands, and round to the nearest dollar. For example, if your answer is $1,200.45 then enter 1,200; if your answer is $310.58 then enter 311 1. What is the monthly payment for this loan? A 2. What is the loan balance today? 3. Today, you decide you want to pay off the loan in 12 months rather than the remaining life of the loan. How much more do you have to add to your monthly payment in order to accomplish this goal? You want to obtain a sample to estimate a population proportion. Based on previous evidence, you believe the population proportion is approximately p=38%p=38%. You would like to be 99.9% confident that your esimate is within 1% of the true population proportion. How large of a sample size is required?n =You want to obtain a sample to estimate a population proportion. Based on previous evidence, you believe the population proportion is approximately p=27%p=27%. You would like to be 99.5% confident that your esimate is within 1.5% of the true population proportion. How large of a sample size is required?n =You are interested in estimating the the mean age of the citizens living in your community. In order to do this, you plan on constructing a confidence interval; however, you are not sure how many citizens should be included in the sample. If you want your sample estimate to be within 4 years of the actual mean with a confidence level of 96%, how many citizens should be included in your sample? Assume that the standard deviation of the ages of all the citizens in this community is 22 years.Sample Size: A fence is put around a rectangular plot of land. The perimeter ofthe fence is 28 feet. Two of the opposite sides of the fence cost $10per foot. The other two sides cost $12 per foot. If the total cost ofthe fence is $148, what are the dimensions of the fence?1) 8 by 202) 4 by 103) 3 by 114) 2 by 12Please help with a step by step explanation. Thanks! Lakeland Co. had a current ratio of 2.5 last year and 2.3 this year. They had a quick ratio of 1.4 last year and 1.6 this year. Which of the following can we know? Cash increased Inventory increased C Under the Code, a copy of an offer to purchase must be given to the buyer:a. promptly but not later than 24 hours after the buyer signed the offer.b. as soon as convenient for the REALTOR.c. upon the buyer signing the offer. Suppose that the only eigenvalue of A Mn is = 1.Show that A is similar to Ak for each k = 1, 2,3,... Which of the following is NOT a step in the sales process? Question content area bottom Part 1 A. Make the initial contact B. Pricing the product C. Prospecting D.Follow-up E. Qualifying the lead" Describe using Knowledge Management for Learning andTransfer of Training of Sheraton Hotel. Part 3 Essay Question (11% in total) 1. Discuss the statement, "Money has a time value." (4 points) 2. Discuss the statement, "It is always preferred to select an account that offers compound interest Your Best You cosmetics company's lipstick usually wears off in about two hours. Your Best You chemists have developed a new lipstick formula that they believe will last longer than their current product. They get a group of women to wear the new lipstick and assess how long it takes for the lipstick to wear off. Then they run a hypothesis test, setting alpha to .05. The p-value is .05. What should the researchers at Your Best You do? a. reject the null hypothesis b. fail to reject the alternative hypothesis c. fail to reject the null hypothesis d. reject the alternative hypothesis Let f(x) = x + 6x + 10, and g(z) = 5. Find all values for the variable z, for which f(z) = g(z). P= Preview Preview Get Help: Video eBook consider the following random walk process: yt=0+yt-1+et, t = 1, 2, ... where {et: t = 1, 2, ...} is i.i.d. with a mean of zero and variance of 2e Question 1 < > 3 pts 1 Deta Decentralization has the following disadvantages: O Decreased goal alignment, slower decision-making, increased costs. O Decreased ability to keep goals aligned, economies find value 48+183_306+5 how sound is amplified by a resonance tube. Consider a generalized cone parametrized as in section 4.3 exercise 2 with 0 [0, L) and r e [a,b]. Show that its area is L (62 a?). a 2 = (2) Assume that we have a cone (see section 4.1 exercise 2) given by q(r.) = rc(0), , 0 where c is a space curve with c| = 1 and learn 1 = 1. Show that the first fundamental form is given by de = do [ Grr Gr gro 9 )-[] 1 0 0 p2 and compare this to polar coordinates in the plane. "y"" 8y' + 16y = 0 Use this to answer the following parts: Q2.1 7 Points Using the Method of Undetermined Coefficients, Find the general solution to the given equation. [CLO-5] Overbooking of passengers on intercontinental flights is a common practice among airlines. Aircraft which are capable of carrying 300 passengers are booked to carry 320 passengers. If on average 10% of passengers :have a booking fail to turn up for their flights, then we interest to the probability that at least one passenger who has a booking will end up without a seat on a particular flight.Let X = number of passengers with a booking who turn up, so calculate P(X>300) (show a detailed solution)a)- By approximation by Normal.b)- By Binomial (use the binomial formula).