if you make monthly payments of $1,000 for 10 years, determine the total payment over the lifetime of the…

if you make monthly payments of $1,000 for 10 years, determine the total payment over the lifetime of the loan. a. $10,000 b. $100,000 c. $120,000 d. $130,000 please select the best answer from the choices provided a b c d

if you make monthly payments of $1,000 for 10 years, determine the total payment over the lifetime of the loan. a. $10,000 b. $100,000 c. $120,000 d. $130,000 please select the best answer from the choices provided a b c d

Answer

Explanation:

Step1: Calculate number of months

There are 12 months in a year, and the loan - term is 10 years. So the number of months $n = 12\times10=120$ months.

Step2: Calculate total payment

The monthly payment is $P = 1000$. The total payment $T$ over the lifetime of the loan is the product of the monthly payment and the number of months. So $T=P\times n = 1000\times120 = 120000$.

Answer:

C. $120,000$