Question

a bank charges a simple interest of 3.5% on a loan of $5000 to be paid back over a period of 3 years. How much will the borrower pay in total after three years of paying the required amount?

Answer 1

Answer: The monthly payments for a $5,000 loan would $146.51.

Step-by-step explanation: How it looks in the TVM Solver formula:

N = 36 ( 3 (years) x 12 (monthly payments) )

I% = 3.5%

PV = $5,000

PMT = 146.51 (or 146.08 if you choose BEGIN)

FV = 0

P/Y = 12 (months)

C/Y = (12 (months)

PMT: END | BEGIN