Question

Trey is taking out a loan for $85000. It is a 20-year loan with an APR of 5.85% what will his monthly payment be?

Answer 1

Answer:

$768.54 (Approximate)

Step-by-step explanation:

Trey is taking out a loan for $85000. It is a 20-year loan with an APR of 5.85%.

Therefore, if we consider the interest rate is simple interest, then using the simple interest formula, the sum will become after 20 years

$85000(1 + \frac{5.85 \times 20}{100}) = 184450$ dollars.

Therefore, the monthly payment for the loan will be $\frac{184450}{20 \times 12} = 768.54$ dollars. (Answer)