Question

Susan took out a personal loan for $3,500 at an interest rate of 13% compounded monthly. she made arrangements to pay the loan off in 3 years. what will her monthly payment be? a. $99.34 b. $105.32 c. $117.93 d. $156.60

Answer 1

Susan's monthly payment will be $117.93.

We have Susan take out a personal loan for $3,500 at an interest rate of 13% compounded monthly.

P=3500

r=30%

t=3

What is the amortization formula?

$A = \frac{P(\frac{r}{12} )}{(1 -(1 +r/12)^{(-12t)}}$

Where A is the payment,

P= principal,

r =the annual interest rate

t is the number of years.

use the given value in the formula we get

$A = \frac{3500(0.13/12)}{(1 -(1 +0.13/12)^{-36} }$

A=117.9288

A= 117.93

Susan's monthly payment will be $117.93.

To learn more about the monthly payment visit:

brainly.com/question/25109150