Question

A college student borrows ​$1000 for 3 months to pay for a semester of school. If the interest is ​$20.63​, find the monthly payment.

Answer 1

The monthly payment would be 10,189

Answer 2

Answer : The monthly payment is, $ 340.21

Step-by-step explanation :

As we are given,

Interest = $ 20.63

A student borrows money for 3 months = $ 20.63

Let the monthly payment be $ x

So, in 3 months, the student paid $ 3x

And, as we know that the interest is the difference of paid money and the money borrowed. That means,

3x - 1000 = 20.63

Now by solving the terms, we get the value of 'x'.

3x = 20.63 + 1000

3x = 1020.63

`x=(1020.63)/(3)=\$ 340.21`

Therefore, the monthly payment is, $ 340.21