Math Problem Statement
If a person borrows $14,400 and repays the loan by paying $300 per month to reduce the loan and 1% of the unpaid balance each month for the use of the money, what is the total cost of the loan over 48 months?
Solution
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Math Problem Analysis
Mathematical Concepts
Loan Amortization
Simple Interest
Algebra
Formulas
Interest payment = 0.01 × Unpaid balance
New Balance = Previous Balance - 300
Theorems
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Suitable Grade Level
Grades 9-12
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