how to write a linear equation describing your monthly student loan balance

Question

my student loan balance is $9,500 over the course of 10 years it would come to a payment of $93.94 a month.  How do I write that as a linear equation?

Answer 1

 

Note that your monthly payment includes interest as well as principal.

If you pay $93.94 per month for 10 years, your total payments will be $93.94•120 = 11,272.80

Amount you will pay in interest is 11,272.80 - 9500 = 1,772.80 

 

Let m = number of months

 

  Amount paid over 10 years, at $93.94 per month is

 

  P = 93.94m, where  m =120   ... 10 years = 120 months

 

P represents the amount paid after m months.

B represents the balance, after m payments are made

 

So since the total payments are 11,272.  The following can represent the balance, after m months of payments

 

   B = 11,272 - 93.94m