using the tvm calc answer"Lin borrowed $22,000 with a credit card. If the interest rate is 15.1% and she wants to pay it off over 10 years, what is the total cost of her purchases?"

To calculate the total cost of Lin's purchases, we need to determine how much she will pay in total if she pays off the $22,000 loan over 10 years with a 15.1% interest rate using the **TVM (Time Value of Money) formula**.

The formula to calculate the monthly payment (PMT) for a loan is:

\[
PMT = \dfrac{P \times r}{1 - (1 + r)^{-n}}
\]

Where:
- $ P $ = Loan principal = $22,000
- $ r $ = Monthly interest rate = $\dfrac{15.1\%}{12}$ = $\dfrac{0.151}{12}$
- $ n $ = Total number of payments = 10 years $\times 12$ months = 120 months

First, we can calculate the monthly payment, then multiply by the total number of payments to get the total cost over 10 years.

Let's calculate it.The total cost of Lin's purchases, if she pays off the $22,000 loan over 10 years at an interest rate of 15.1%, will be approximately **$42,754.24**. This includes both the principal and the interest paid over the loan period.

Would you like more details on how the monthly payment was calculated or have any other questions?

Here are some related questions:
1. How much would the total cost be if the interest rate were lower, say 10%?
2. What would be the monthly payment for Lin's loan?
3. How does the loan term (years) affect the total cost?
4. What portion of the total payment is interest?
5. How can Lin minimize the total interest paid?

**Tip:** Reducing the loan duration can significantly reduce the total interest paid over time.

Lin borrowed $22,000 with a credit card. If the interest rate is 15.1% and she wants to pay it off over 10 years, what is the total cost of her purchases?

Calculate the total cost of repaying a $22,000 loan over 10 years at an interest rate of 15.1%. Learn how to use the Time Value of Money (TVM) formula and determine monthly payments, total interest, and total cost. Ideal for financial math students in grades 10-12 and beyond.

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