Questions: Lashonda borrowed money from her credit union to buy a fishing boat. She took out a personal, amortized loan for 13,500, at an interest rate of 5.4%, with monthly payments for a term of 6 years. For each part, do not round any intermediate computations and round your final answers to the nearest cent. If necessary, refer to the list of financial formulas. (a) Find Lashonda's monthly payment. (b) If Lashonda pays the monthly payment each month for the full term, find her total amount to repay the loan. (c) If Lashonda pays the monthly payment each month for the full term, find the total amount of interest she will pay.

Solution Steps

The monthly payment (M) can be calculated using the formula: \[ M = P \frac{r/n}{1 - (1 + r/n)^{-nt}} \] Where:

• \(P\) is the principal loan amount, which is $13500
• \(r\) is the annual interest rate (as a decimal), which is 0.054
• \(n\) is the number of payments per year, which is 12
• \(t\) is the loan term in years, which is 6 Plugging in the values, we get: \[ M = 13500 \frac{0.054 / 12}{1 - (1 + 0.054 / 12)^{-6 \times 12}} \] Therefore, the monthly payment is $219.93

The total repayment amount can be calculated as: \[ \text{{Total Repayment}} = M \times n \times t \] Plugging in the values, we get: \[ \text{Total Repayment} = 219.93 \times 12 \times 6 \] Therefore, the total repayment amount is $15834.98

The total interest paid can be calculated as: \[ \text{{Total Interest}} = (\text{{Total Repayment}}) - P \] Plugging in the values, we get: \[ \text{Total Interest} = 15834.98 - 13500 \] Therefore, the total interest paid is $2334.98

Final Answer: