Question

Clarence borrows $9,000 for 4 years at an APR of 6.5%. What are his monthly payments ?

Answer 1

$199.69

Explanation:

$9000 × 6.5% (Total Borrowing × APR)

$585 ( Net Interest Payment)

$9000 + $585 (Total Borrowing + Net Interest Payment)

$9585 / (4 × 12) (Total Payment Due / (No. of Years × Per month)

$199.69 (Monthly Payment)