Question

Michelle borrowed $10,125 at 12.5 percent for 10 years. What is her monthly payment

Answer 1

Answer:

Michelle's monthly payment will be $148.21.

Step-by-step explanation:

The EMI formula is =

$\frac{p\times r\times(1+r)^{n} }{(1+r)^{n}-1}$

Here,

p = $10125

r = $12.5/12/100=0.010417$

n = $10\times12=120$

Putting all these values in the formula we get,

$\frac{10125\times0.010417\times(1+0.010417)^{120} }{(1+0.010417)^{120}-1}$

=>$\frac{10125\times0.010417\times(1.010417)^{120} }{(1.010417)^{120}-1}$

=$148.21

So, Michelle's monthly payment will be $148.21.

Answer 2

Answer:

$148.21

Step-by-step explanation:

A suitable financial calculator, web site, or spreadsheet can figure this for you. Or you can use the formula given in your reference material (text or web site).