Question

Lori borrowed $3000 from her bank for 6 months. It was a fixed installment loan at 7.5%. How much were her 6 monthly payments?

Answer 1

Her 6 monthly payments totaled in $225, $37.5 payed per month.

Explanation:

7.5% of $3000 is

`3000 * 0.075 = 225`

If Lori needs to pay back $225 over a period of 6 months, with monthly payments, that means Lori is paying her bank

`225 / 6 = 37.5`

$37.5 per month.

Answer 2

The monthly payment of Lori per month is $37.5

Solution:

Given that Lori borrowed $3000 from bank for 6 months at fixed installment loan of 7.5 %

So the amount borrowed by Lori is given as,

= 7.5% of 3000

`= (7.5)/(100) * 3000`

`= 7.5 * 30`

= 225

So the total payments for 6 months is 225. Lori’s monthly payment can be found out by dividing the total payment by 6 months.

Monthly payment of Lori =
`(225)/(6)` = 37.5

So Lori has to pay $37.5 per month over a period of 6 months.

Hence the 6 monthly payment of Lori is $37.5