Question

Lori borrowed $3000 from her bank for 6 months. It was a fixed installment loan at 7.5%. How much were her 6 monthly payments?

Answer 1

Answer:

The monthly payment of Lori per month is $37.5

Solution:

Given that Lori borrowed $3000 from bank for 6 months at fixed installment loan of 7.5 %

So the amount borrowed by Lori is given as,

= 7.5% of 3000

$= \frac{7.5}{100} \times 3000$

$= 7.5 \times 30$

= 225

So the total payments for 6 months is 225. Lori’s monthly payment can be found out by dividing the total payment by 6 months.

Monthly payment of Lori = $\frac{225}{6}$ = 37.5

So Lori has to pay $37.5 per month over a period of 6 months.

Hence the 6 monthly payment of Lori is $37.5

Answer 2

Answer:

Her 6 monthly payments totaled in $225, $37.5 payed per month.

Step-by-step explanation:

7.5% of $3000 is

$3000 \times 0.075 = 225$

If Lori needs to pay back $225 over a period of 6 months, with monthly payments, that means Lori is paying her bank

$225 \div 6 = 37.5$

$37.5 per month.