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Sagot :
Using simple interest, it is found that the monthly payment for this loan is of $325.485.
Simple Interest
Simple interest is used when there is a single compounding per time period.
The amount of money after t years in is modeled by:
[tex]A(t) = A(0)(1 + rt)[/tex]
In which:
- A(0) is the initial amount.
- r is the interest rate, as a decimal.
In this problem, the parameters are A(0) = 8100, r = 0.0822, t = 2.5, hence, the total amount is:
[tex]A(t) = A(0)(1 + rt)[/tex]
[tex]A(t) = 8100[1 + 0.0822(2.5)][/tex]
[tex]A(t) = 9764.55[/tex]
it will be paid over 2.5 x 12 = 30 months, hence the monthly payment is given by:
M = 9764.55/30 = $325.485.
More can be learned about simple interest at https://brainly.com/question/25296782
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