Question

- Nick will borrow $8700 at 13.5% APR. He will pay it back over 5 years.

Answer 1

Answer:

His monthly payment will be $\ 242.875$.

Step-by-step explanation:

Given that,

Amount borrowed by Nick is $\ 8700$.

Rate of interest per Annum is $13.5\%$.

Time taken by Nick to Pay it back is $5\ years$.

To find:-  What will his monthly payment be ?

So, $Principle=\ 8700$, $R=13.5\%$ & $Time=5\ years$

                         $S.I=\frac{P\times R\times T}{100}$

                        $S.I=\frac{8700\times 13.5\times 5}{100} = \frac{587250}{100}$

                        $S.I=5872.5$

Here, Amount to be paid after $5\ years$ will be,

                   $A=P+I$

                   $A=8700+5872.5$

                   $Amount=\ 14572.5$

Then,

Amount should be paid in a month for next  $5\ years$  would be  $\frac{14572.5}{60} =\ 242.875$.                                                  

                                                                                         {$5\ years = 60\ months$} Therefore,

His monthly payment will be $\ 242.875$