Answer:7/36
Step-by-step explanation:
Firstly, I would draw a table to visually see what the outcomes are. There are many methods but this is what i find to be the easiest so here it goes!!!
I hope the pic helps! If you have any questions feel free to ask!
Step-by-step explanation:
The amount borrowed = Principal = $8000
The rate of interest = 7.2%
Time (T) = 3 years
Now, Simple Interest =
So, the total interest = $1728
Now, <u>Amount to be paid = Principal + Interest</u>
⇒ A = $8000 + $1728 = $8728
Also, 1 year = 12 months
⇒ 3 years = 3 x 12 months = 36 months
So, total amount to be paid in 36 months is $8728.
⇒The amount to be paid in 1 month is
Hence, the monthly payment is $242.44 if loan is to paid off in 3 years.