Answered

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Compute the monthly payments for an add-on interest loan of $ 2890, with an annual interest rate of 10% and a term of 3 years.

Sagot :

The principle is $2890 the rate is 10% and the term is 3 years so it follows:

[tex]P=2890,r=0.1,n=3[/tex]

The interest is given by:

[tex]I=p\times n\times r=2890\times0.1\times3=867[/tex]

The principle to be repaid is given by:

[tex]P^{\prime}=\frac{2890}{36}=80.28[/tex]

The monthly interest will be:

[tex]I=\frac{867}{36}\approx24.083[/tex]

The monthly payment is given by:

[tex]M=P^{\prime}+I=104.363[/tex]

The monthly payment is $104.363.

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