What is the total amount of the loan if the monthly interest payment at an 8% rate is $650?

To determine the total amount of the loan based on the monthly interest payment and the interest rate, it's essential to understand the relationship between the loan amount, the interest rate, and the monthly interest payment.

The monthly interest payment is calculated using the formula:

[ \text{Monthly Interest Payment} = \left( \frac{\text{Annual Interest Rate}}{12} \right) \times \text{Loan Amount} ]

In this case, the monthly interest payment is $650, and the annual interest rate is 8%. To find the monthly interest rate, you divide the annual rate by 12:

[ \text{Monthly Interest Rate} = \frac{8%}{12} = \frac{0.08}{12} \approx 0.0066667 ]

Now, using the monthly interest payment to find the total loan amount:

[ 650 = 0.0066667 \times \text{Loan Amount} ]

To find the loan amount, you rearrange the equation:

[ \text{Loan Amount} = \frac{650}{0.0066667} \approx 97,500 ]

This calculation shows that the total amount of the loan