Question

QUESTION 1

Answer 1

Answer:

1) (D)

2) (B)

3) (C)

Step-by-step explanation:

1) Amount borrowed = $1380 (P)

APR =13% or 0.13 (R)

Time = 15 months (T) = 15/12

Interest amount = $\frac{P*R*T}{100}$

                           =  $\frac{1380*13*15}{1200}$

                          = $224.25

Total amount  = 1380+224.25

                        = $1604.25

Monthly payment = 1604.25/15 = $106.95 (D)

2) Amount borrowed = $2240

APR = 15% or 0.15

Time = 18 months

Interest = $\frac{P*R*T}{100}$

           = $\frac{2240*15*18}{1200}$

          = $504 (B)

3) Amount borrowed = $5500

APR = 11.5% or 0.115

Time = 5 years

n= 12 (compounded monthly)

M = $\frac{P}{\frac{1-(1+r/n)^{-nt}}{r/n} }$

   = $\frac{5500}{\frac{1-(1+\frac{0.115}{12} )^{-60}}{\frac{0.115}{12}} }$

  = $120.95 (C)

Answer 2

I used this formula below to get the monthly payments:

To get the interest:

Principal amount x Interest rate in decimal form x the number of months of payment.

To get the monthly payment, you'll have to add the principal amount and the interest and divide it by the number of months of payment.

1st question, the answer would be letter D. $106.95.
Question 19's answer would be letter B. $504.
Since I don't have the table that you have mentioned, based on my computation, the answer for question 2 is $144.375. None of the choices show the correct answer.