To determine how much Michael will pay back over the next 14 years and how much more this amount is than the original loan amount, we will follow these steps:
1. Calculate the total amount paid over 14 years:
Michael’s monthly payments are [tex]$364. He will make these payments for 168 months (which is 14 years).
To find the total amount paid over the 14 years, we multiply the monthly payment amount by the number of months:
\[
\text{Total amount paid} = \text{monthly payment} \times \text{number of months}
\]
Plugging in the values, we get:
\[
\text{Total amount paid} = 364 \times 168
\]
This results in a total amount of:
\[
\text{Total amount paid} = 61,152
\]
2. Calculate how much more Michael will pay back compared to the original loan amount:
The original loan amount was \$[/tex]60,000. The total amount paid over 14 years was found to be \[tex]$61,152.
To find out how much more Michael is paying back, we subtract the original loan amount from the total amount paid:
\[
\text{Extra amount paid} = \text{Total amount paid} - \text{Original loan amount}
\]
Substituting the values, we get:
\[
\text{Extra amount paid} = 61,152 - 60,000
\]
This results in:
\[
\text{Extra amount paid} = 1,152
\]
So, Michael will pay \$[/tex]61,152 over the next 14 years. This is \$1,152 more than the original loan amount.
