Question

A $52,000 loan is taken out on a boat with the terms 3% apr for 36 months. the apr is compounded monthly. how much are the monthly payments on this loan?

Answer 1

Monthly payments=($56890.673/36)=$1,580.296

Step-by-step explanation:

The formula for calculating the compound interest is given as;

A=P(1+r/n)^nt

where;

A-Amount to be paid after a given period of time

P-Principal amount initially taken=$52,000

r-The annual interest rate=3%=3/100=0.03

n-Number of times the interest is to be compounded per unit time=12

t-3

Replacing;

A=52000(1+0.03/12)^3

A=52000(1.0025)^(3×12)

A=56,890.673

The total amount after 36 months=$56,890.673

Monthly payments=($56890.673/36)=$1,580.296