To solve this problem, we first need to calculate the monthly interest rate and then use it to calculate the monthly repayments. After that, we can calculate the total amount repaid over the year and subtract the initial loan amount to find the total amount of fees and interest paid.

Step 1: Calculate the monthly interest rate
The annual interest rate is 47.6158%, but it's compounding monthly. So, we need to divide it by 12 to get the monthly interest rate.
Monthly interest rate = 47.6158% / 12 = 3.96798%

Step 2: Calculate the monthly repayments
We can use the formula for the monthly payment on a loan, which is:
P = [r*PV] / [1 - (1 + r)^-n]
where:
P = monthly payment
r = monthly interest rate (in decimal form, so 3.96798% = 0.0396798)
PV = present value, i.e., the amount of the loan ($2500)
n = number of payments (12 months)

P = [0.0396798 * 2500] / [1 - (1 + 0.0396798)^-12]
P = 99.17995

Step 3: Calculate the total amount repaid over the year
Total amount repaid = monthly payment * number of payments
Total amount repaid = 99.17995 * 12 = $1190.1594

Step 4: Calculate the total amount of fees and interest paid
Total fees and interest = total amount repaid - initial loan amount + establishment fee
Total fees and interest = $1190.1594 - $2500 + $400 = $90.1594

None of the provided options match this result, so there might be a mistake in the problem or in the provided options.

Question

To solve this problem, we first need to calculate the monthly interest rate and then use it to calculate the monthly repayments. After that, we can calculate the total amount repaid over the year and subtract the initial loan amount to find the total amount of fees and interest paid.

Step 1: Calculate the monthly interest rate
The annual interest rate is 47.6158%, but it's compounding monthly. So, we need to divide it by 12 to get the monthly interest rate.
Monthly interest rate = 47.6158% / 12 = 3.96798%

Step 2: Calculate the monthly repayments
We can use the formula for the monthly payment on a loan, which is:
P = [r*PV] / [1 - (1 + r)^-n]
where:
P = monthly payment
r = monthly interest rate (in decimal form, so 3.96798% = 0.0396798)
PV = present value, i.e., the amount of the loan ($2500)
n = number of payments (12 months)

P = [0.0396798 * 2500] / [1 - (1 + 0.0396798)^-12]
P = 99.17995

Step 3: Calculate the total amount repaid over the year
Total amount repaid = monthly payment * number of payments
Total amount repaid = 99.17995 * 12 = $1190.1594

Step 4: Calculate the total amount of fees and interest paid
Total fees and interest = total amount repaid - initial loan amount + establishment fee
Total fees and interest = $1190.1594 - $2500 + $400 = $90.1594

None of the provided options match this result, so there might be a mistake in the problem or in the provided options.

Knowee AI · Accepted Answer

To solve this problem, we first need to calculate the monthly interest rate and then use it to calculate the monthly repayments. After that, we can calculate the total amount repaid over the year and subtract the initial loan amount to find the total amount of fees and interest paid.

Step 1: Calculate the monthly interest rate
The annual interest rate is 47.6158%, but it's compounding monthly. So, we need to divide it by 12 to get the monthly interest rate.
Monthly interest rate = 47.6158% / 12 = 3.96798%

Step 2: Calculate the monthly repayments
We can use the formula for the monthly payment on a loan, which is:
P = [r*PV] / [1 - (1 + r)^-n]
where:
P = monthly payment
r = monthly interest rate (in decimal form, so 3.96798% = 0.0396798)
PV = present value, i.e., the amount of the loan ($2500)
n = number of payments (12 months)

P = [0.0396798 * 2500] / [1 - (1 + 0.0396798)^-12]
P = 99.17995

Step 3: Calculate the total amount repaid over the year
Total amount repaid = monthly payment * number of payments
Total amount repaid = 99.17995 * 12 = $1190.1594

Step 4: Calculate the total amount of fees and interest paid
Total fees and interest = total amount repaid - initial loan amount + establishment fee
Total fees and interest = $1190.1594 - $2500 + $400 = $90.1594

None of the provided options match this result, so there might be a mistake in the problem or in the provided options.

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