Question

Rounding in the calculation of monthly interest rates is discouraged. Such rounding can lead to answers different from those presented here. For long-term loans, the differences may be pronounced.
Assume that you take out a $3000 loan for 30 months at 8.5% APR. What is the monthly payment? (Round your answer to the nearest cent.)

Answer 1

Answer:

111.35

Step-by-step explanation:

effective rate: .085/12= .00708333333333

$3000=x\frac{1-(1+.00708333333333)^{-30}}{.00708333333333}\\x=111.35$