Consumer had 7500 borrowed at 18 % interest. They paid it down to 5000 in 12 months, they made unequal payments and did not record the payments. Consumer wants to know how much they paid total in order to get the loan paid down to 5000 during that year.
+23247 This can't be determined.
Let's take an easier example: let's say that they started with a loan of $7500.00 and after two months had the amount owed down to $7000.00 ---
At 18% per year, the monthly interest rate is 18% ÷ 12 = 1.5% or 0.015.
First way: Loan amount is $7500.00 with an added interest of 1.5% at the end of that month, the loan total is $7500.00 + $112.50 = $7612.50.
If they pay $500.00 that month, they will then owe $7612.50 - $500.00 = $7112.50.
Next month, their added interest will be 1.5% of $7112.50 = $106.69. Add this to what they already owe, and they now owe $7112.50 + $106.69 = $7219.19. This month they pay $219.19 on their loan so after two months they still owe $7000.00 and they will have paid is $500.00 + $219.19 = $719.19.
Second way: again, they owe $7612.50 at the end of the first month but now they pay $400.00, so they will then still owe $7612.50 - $400.00 = $7212.50.
The next month, their added interest will be 1.5% of $7212.50 = $108.19, for a total of $7212.50 + $108.19 = $7320.69. If they pay $320.69 this month, they now still owe $7000.00 but they will have paid $400.00 + $320.69 = $720.69, a different amount then the first way.
So, there are various ways that they can start with the same amount and end with the same amount but pay various amounts in getting there. (Because of interest being added, the more that they pay at the beginning, the less they have to pay at the ending.)
+23247 This can't be determined.
Let's take an easier example: let's say that they started with a loan of $7500.00 and after two months had the amount owed down to $7000.00 ---
At 18% per year, the monthly interest rate is 18% ÷ 12 = 1.5% or 0.015.
First way: Loan amount is $7500.00 with an added interest of 1.5% at the end of that month, the loan total is $7500.00 + $112.50 = $7612.50.
If they pay $500.00 that month, they will then owe $7612.50 - $500.00 = $7112.50.
Next month, their added interest will be 1.5% of $7112.50 = $106.69. Add this to what they already owe, and they now owe $7112.50 + $106.69 = $7219.19. This month they pay $219.19 on their loan so after two months they still owe $7000.00 and they will have paid is $500.00 + $219.19 = $719.19.
Second way: again, they owe $7612.50 at the end of the first month but now they pay $400.00, so they will then still owe $7612.50 - $400.00 = $7212.50.
The next month, their added interest will be 1.5% of $7212.50 = $108.19, for a total of $7212.50 + $108.19 = $7320.69. If they pay $320.69 this month, they now still owe $7000.00 but they will have paid $400.00 + $320.69 = $720.69, a different amount then the first way.
So, there are various ways that they can start with the same amount and end with the same amount but pay various amounts in getting there. (Because of interest being added, the more that they pay at the beginning, the less they have to pay at the ending.)
