Question

Item 18 A music company offers a loan to buy a drum set for $1500. The simple interest is 11.8% and the loan will be paid in equal monthly payments for 2 years. What is the monthly payment?

Answer 1

I think you have to first find out the the total payment with the  interest money which is (1500x11.8%) x2 +1500= $1854. So the monthly payment for 2 years will be
$1854/24 (2years=24months) = $77.3