Carlos took seven years to pay off his loan by making identical quarterly payments. the loan had a principal of $22,375 and 5.49% interest, compounded quarterly. carlos paid a total of $28,821.67. how much did carlos pay in service charges? round all dollar values to the nearest cent.

Carlos pay in service charges is $1721.3  

Step-by-step explanation:

Given : Carlos took seven years to pay off his loan by making identical quarterly payments.

The loan had a principal of $22,375 and 5.49% interest, compounded quarterly.

Carlos paid a total of $28,821.67.    

To find : How much did Carlos pay in service charges?

Solution : First we find the monthly payment of the loan

Formula of monthly payment

Monthly payment,

Discount factor

Where, Amount = $22,375

Rate r= 5.49%=0.0549 compounded quarterly

Time = 7 years

Now, put all the values we get,

Monthly payment,

Now payment he has for for 7 years compounded quarterly i.e, for 28

Payment = 967.871 × 28 = $27100.39

Service charges = Total payment - payment

                            =   $28,821.67 - $27100.39

                             = $1721.27

Therefore, Carlos pay in service charges is $1721.3

step-by-step explanation:

you can add the two numbers and divide the result by 2. or you can find the gap between the two numbers and add half of this to the smaller number.