Question

Ray Flagg took out a​ 60-month fixed installment loan of​ $12,000 to open a new pet store. He paid no money down and began making monthly payments of ​$232. ​Ray's business does better than expected and instead of making his 30th ​payment, Ray wishes to repay his loan in full.

Answer 1

Answer:

Ray Flagg will pay $5,272 at the time of his 30th installment.

Step-by-step explanation:

Ray took $12,000 load for 60 months. As he paid no amount as down payment so his monthly payment will be $200:

$=12000/60\\=200$

Instead of $200 per month, he used to pay $232 per month. So, before his 30th installment, he paid 29 installments each of $232 which is $6,728:

$=232*29\\=6728$

As the business does better, he wishes to payback remaining amount at once so he will pay $5,272 as:

$12000-6728\\=5272$