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Question 15
1 pts
Liam buys a computer for $1800. He takes out a simple interest loan at 8% for this computer for 3
years. He puts no money down. What will be his monthly payments if he plans on paying it off in 3
years? Round to the nearest cent.

Sagot :

LeCoolKid

Answer:

$62

Step-by-step explanation:

To start off, we will calculate the end amount he will pay:

A = P(1 + rt)

   = 1800(1+3(0.08)

   = 1800(1+0.24)

   = 1800(1.24)

   = 2232

He will have to pay 2232 dollars in 3 years

Since he plans to pay it off with monthly payments throughout the 3 years, we will have that loan divided by the amount of times he will make those monthly payments

3 years = 3 ( 12 months )

            = 36 months

He will make 36 monthly payments

2232 / 36 = 62

So, in each monthly payment, he will pay $62.

Feel free to ask me any questions you may have about this problem!

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