Answer:
The monthly payments to be made is $62.50. The total interest that will be paid is $1,513.
Step-by-step explanation:
The formula to compute the monthly payment is:
Here,
<em>A</em> = periodic payment
<em>P</em> = principal amount borrowed
<em>i</em> = periodic interest rate
<em>n</em> = number of periods
The information provided is:
<em>P</em> = $2,237
<em>i</em> = 1.88% = 0.0188
<em>n</em> = 60
Compute the value of <em>A</em> as follows:
Thus, the monthly payments to be made is $62.50.
The formula to compute the total interest that will be paid is:
Compute the total interest that will be paid as follows:
Thus, the total interest that will be paid is $1,513.