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taurus [48]
3 years ago
14

A commercial bank will loan you $7,500 for two years to buy a car. The loan must be repaid in 8 equal quarterly payments. The an

nual interest rate on the loan is 12 percent. How large are the monthly payments?
Social Studies
1 answer:
Annette [7]3 years ago
5 0
First work out total amount repayable.
You have the loan (100%) and the interest payments for 2 YEARS (12 * 2 = 24%). Add them together and you get 124%.

£7500 / 100 = £75 (1%)

(* 124)

= £9300 REPAYABLE (124%)

2 Years = 24 Months

£9300 / 24 = £387.50.

Monthly repayments will be £387.50

In from U.K. so used the pound sign, just change back to dollars.

Hope this helped

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