Question

Suzie needs to borrow $6,000 from a local bank. What is the monthly payment for a one year, 11.25% loan?

Answer 1

Given :

Suzie needs to borrow $6,000 from a local bank.

Interest rate, r = 11.25%.

To Find :

The monthly payment of Suzie for one year to pay of the loan.

Solution :

Total amount to return is :

$A = 6000 + \dfrac{6000\times 11.25}{100}\\\\A =\ 6675$

Let, monthly payment is x.

So,

$x =\ \dfrac{6675}{12}\\\\x = \ 556.25$

Therefore, the monthly payment for loan is $556.25 .