Tom bought a car worth sh.800000 using a loan from a credit corporation. He was to pay back using four equal yearly instalment of shule.200000.The lender charged compound interest at the rate of 16%p.a. and a ledger fee at 1.5%p.a on any outstanding balance at the time when each instalment is paid. What is the total amount of money that Tom paid to clear the loan?

Question

Tom bought a car worth shule.800000 using a loan from a credit corporation. He was to pay back using four equal yearly instalments of sh.200000.The lender charged compound interest at the rate of 16%p.a. and a ledger fee at 1.5%p.a.  on any outstanding balance at the time when each instalment is paid. What is the total amount of money that Tom paid to clear the loan?