The answer is: $ 211.90 / mo. . ________________________________ Explanation: ________________________________ Use the formula: ________________________________ I = P * R * N ;
in which "I" = the amount of interest to be paid; "P" = the principal, which is the amount of money borrowed; "N" = the number of times that the interest.
Note: from the problem: "p.a." means "per annum", or "each year.
So, from the problem, "8.9% p.a. for 30 months."
Since 12 months = 1 year; 24 months = 2 years; 36 months = 3 years.
So 30 months = 24 months + 6 months; or 2 1/2 years; or, 2.5 years; ________________________________ So, from the problem: "8.9 % p.a. for 2.5 years" . ________________________________________- This tells us that: "R" = 8.9% = 8.9 /100 = 0.089 ;
and that: "N" = 2.5 ; _______________________________________________ We are given: "P" = $5200" ; ______________________________________________ Plug this values in the formula, to solve for "I" : ______________________________________________ I = P * R * N ; ______________________________________________ I = 5200 * 0.089 * 2.5
= $1157 _______________________ So, we know that Carla is charged $1157 interest. ______________________________________ Total repayment = amount borrowed + interest;
= 5200 + 1157 = $ 6357 ; ____________________________________________ Since the $6357 is to be paid in monthly installments, over the course of 30 months; _________________________________________ How much will be repaid per month?
