Question

1. Sharon will borrow $3400 at 11% APR. She will pay it back over 18 months. What will her monthly payment be? (Use table)

Answer 1

Answer:

1) The Monthly payment is 220.06.

2) The Monthly payment is 73.24.

Step-by-step explanation:

1) Given :  Sharon will borrow $3400 at 11% APR. She will pay it back over 18 months.

To find : What will her monthly payment be?    

Solution : Amount is $3400 , APR = 11% , Time= 18 months  

From the table 1  we can see at 11% APR and in 18 months the interest per $100 is 16.50 (Marked in attached table 1)  

So, The total interest is  

$I=16.50\times 34 = 561$

The Monthly payment is  $M= \frac{A+I}{t}$        

$M=\frac{3400+ 561}{18}=220.06$        

Therefore,The Monthly payment is 220.06 Option B is correct.

2) Given : Patrick will borrow $4300 at 11.5% APR. He will pay it bak over 5 years.

To find : What will her monthly payment be?    

Solution : Amount is $4300 , APR = 11.5% , Time= 5 years

From the table 2  we can see at 11.5% APR and in 5 years the interest per $100 is 2.199 (Marked in attached table 2)  

So, The total interest is  

$I=2.199\times 43 =94.557$

The Monthly payment is  $M= \frac{A+I}{t}$        

$M=\frac{4300+94.557}{5\times 12}=73.24$          

Therefore,The Monthly payment is 73.24.

Answer 2

Answer:

1.  The answer is 220.06

2.  Then the monthly payment for $4,300 would be: $4,300/100 x $2.199 =$94.56

Step-by-step explanation: