9514 1404 393
Answer:
A) $1350
B) $5850
C) $162.50
Step-by-step explanation:
A) The interest is given by the formula ...
I = Prt
where P is the principal amount, r is the interest rate, and t is the number of years.
I = $4500×0.10×3 = $1350
The interest owed is $1350.
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B) At maturity, the principal and interest are due. That amount is ...
$4500 +1350 = $5850
The maturity value is $5850.
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C) If the maturity value is paid in 36 equal monthly installments, each is ...
$5850/36 = $162.50
The monthly payment is $162.50.
