Question

What is the monthly payment for a loan if the amount to finance is $12,385, the APR is 6.9 percent for 5 years and the monthly payment per $100 is $2.44?

Answer 1

Answer:

The monthly payment is $244.65.

Step-by-step explanation:

The EMI formula is:

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

Here p = 12385

r = $6.9/12/100=0.00575$

n = $12*5=60$

Putting the values in formula we get,

$\frac{12385*0.00575*(1+0.00575)^{60} }{(1+0.00575)^{60}-1 }$

=> $\frac{12385*0.00575*(1.00575)^{60} }{(1.00575)^{60}-1 }$

= $244.65

And if we see, this is $2.44 per $100.

$244.65/100=2.44$

So, the monthly payment is $244.65.

Answer 2

P*r*t
12385*6.9%*5
$4272.85