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motikmotik
3 years ago
11

You have a $3175 student loan. Suppose you pay the loan off in two and a half years (30 months). Estimate your monthly payment b

y ignoring interest and rounding down the amount owed. (Round your answer to the nearest dollar.)
Mathematics
1 answer:
finlep [7]3 years ago
6 0

Answer:

$106

Step-by-step explanation:

The formula given for Monthly payment of a loan =

P × [ r (1 + r)/(1 + r)^n - 1

Where

r = interest rate

n = number of monthly payments

P = Present value of the loan

From the question,

r = interest rate, we were told to ignore hence, r = 0

P = $3,175

n = 30

Hence,

Amount to be paid monthly = P/n

= $3175/30

= $105.83

Approximately to the nearest dollars

= $106

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