Question

interest rates and profits
interest and total payments on $10,000 loan over five years
the bank would earn a profit of $4,274 over
years if a customer was charged 15%
a borrower would save $1,428 over the life of the
loan at a 5% interest rate rather than a 10% interest
interest rate monthly payment total paid
5% $188.70 $11,322.00
10% $212.50 $12,750.00
15% $237.90 $14,274.00
18% $253.90 $15,234.00

Explanation:

Step1: Identificar los datos relevantes

El préstamo es de $10,000. A una tasa del 15%, el total pagado es $14,274.

Step2: Calcular la ganancia del banco

La ganancia del banco es el total pagado menos el monto del préstamo. $14274 - 10000=4274$.

Step3: Calcular el ahorro del prestatario

A una tasa del 5%, el total pagado es $11,322 y a una tasa del 10% es $12,750. El ahorro es $12750 - 11322 = 1428$.

Answer:

El banco gana $4274 y el prestatario ahorra $1428.