Question

Sabrina took out a personal loan for$2,700 at an interest rate of 10.8% compounded monthly. she made arrangements to pay the loan off in 3 years. what will her monthly payment be?​

Answer 1

Use the formula I=Prt.

P is the principal (amount of money borrowed)

R is the interest rate (per year)

T is the time (expressed in years)

Plug in your numbers, remembering to change 10.8% to a decimal.

I=Prt

I=2700 x 0.108 x 3

I=874.8

12 X 3= 36 months

874.8 / 36=24.3

Therefore, Sabrina will pay $24.30 per month