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 month

Question

attashe74 [19]

2 years ago

12

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 month

ly payments for 2 years. What is the monthly payment?

Mathematics

1 answer:

Mrrafil [7] · Answer 1 · 2022-04-27T21:57:19+03:00

Simple interest<span> is determined by multiplying the daily </span>interest<span> rate by the principal by the number of days that elapse between payments. It is expressed as:

I = Prt

I = 1500(.118)(2) = 354

Total amount to pay = $1854
Monthly payment = $77.25

Hope this answers the question. Have a nice day.</span>