Question

Urgent!!!!!!

Chad Roth took out a $9,100 simple interest loan at 10% for 36 months. After 27 payments, the balance is $2,526.85. He pays off the loan when the next payment is due.
a.) What is the CURRENT month's interest?
b.) What is the final payment?

Answer 1

a) Current Interest is $75.8

b) the final payment will be $11,830

Explanation:

Principal Amount = $9,100

Interest rate = 10% or 0.1

Time = 36 months = 3 yeras

Balance after 27 payments = $2,526.85

a) What is the CURRENT month's interest?

The formula to find interest is:

Interest = P*r*t

P= Principal

r = Interest rate

t = time in years

Interest = 9100*0.1*3

Total Interest = 2730

As total period is 36 months so, divide total interest by 36

Current Month Interest = 2730/36

Current Month Interest = 75.8

So, current month interest is $75.8

b) What is the final payment?

The formula used will be

A = P(1+r*t)

A = Final amount

r = interest rate

t = time

Putting values:

A = P(1+r*t)

A = 9100*(1+0.1*3)

A = 9100*(1.3)

A = 11,830

So, the final payment will be $11,830