Aphrodite took out a 30-year loan from her bank for $170,000 at an APR of 7.2%, compounded monthly. If her bank charges a prepayment fee of 6
months' interest on 80% of the balance, what prepaymeant fee would
Aphrodite be charged for paying off her loan 12 years early?
A. $3246.74
B. $4078.20
C. $4895.83
D. $4921.46

  A. $3246.74

Step-by-step explanation:

The monthly payment can be found from the amortization formula.

  A = P(r/n)/(1 -(1 +r/n)^(-nt))

where P is the principal amount, r is the annual rate compounded n times per year for t years.

Filling in the values, we compute the monthly payment to be ...

  A = $170,000(.072/12)/(1 -(1 +.072/12)^(-12·30)) = $1153.94

__

The remaining balance after t years will be ...

  B = P(1 +r/n)^(nt) -A((1 +r/n)^(nt) -1)/(r/n)

For the given initial principal and the computed payment, after 18 years, the balance will be ...

  B = $170000(1 +.072/12)^(12·18) -$1153.94((1 +.072/12)^(12·18) -1)/(.072/12)

  B = $111,054.71

The prepayment penalty appears to be ...

  (r/2)(0.80B) = (.072/2)(0.80)($111,054.71) = $3,198.38

The closest listed answer choice is ...

  A.  $3246.74

Please ask your teacher how to get the answer, since none of the offered choices appear to be correct.

i'm not really sure how to answer that

step-by-step explanation:

part a: triangles gcb and epb

part b. sides cg and rp are parallel by definition of parallelogram.

angles cgb and e are congruent by being alternate interior angles of parallel lines cut by a transversal. angles gbc and ebp are congruent because they are vertical angles. by aa similarity, the triangles are similar.

part c. since the triangles are similar, the ratios of the lengths of corresponding sides are equal.

calculation of be:

gb/be = cb/bp

(400 ft)/be = 300/200

(400 ft)/be = 3/2

3be = 2 * 400 ft

3be = 800 ft

be = 800/3 ft

calculation of pe:

gc/pe = cb/bp

(350 ft)/pe = 300/200

(350 ft)/pe = 3/2

3pe = 2 * 350 ft

3pe = 700 ft

pe = 700/3 ft