Question

Devin borrowed $1,058 at 13 percent for nine months.

What will he pay in interest?

How much is his total payment?

What will be his monthly payment?

Answer 1

A.
`I\approx \$103.16`

B.
`\text{Total payment}=\$1161.16`

C.
`\text{The monthly payment}\approx \$129.02`

Explanation:

We have been given that Devin borrowed $1,058 at 13 percent for nine months.

A. To find the amount of interest paid by Devin we will use formula:
`I=Prt`, where,

`I=\text{Amount of interest}`,

`P=\text{Principal amount}`,

`r=\text{Interest rate in decimal form}`,

`t=\text{Time in years}`.

Let us convert our given interest rate in decimal form and time in years.

`13\%=(13)/(100)=0.13\\\text{9 months}=(9)/(12)\text{ year}=(3)/(4)=0.75\text{ year}`

Upon substituting our given values in interest formula we will get,

`I=\$1058*0.13*0.75`

`I=\$103.155\approx \$103.16`

Therefore, the amount of interest paid by $103.16.

B. Since total payment will be equal to interest rate plus amount of interest.

`\text{Total payment}=\$1058+\$103.16`

`\text{Total payment}=\$1161.16`

Therefore, Devin's total payment will be $1161.16.

C. To find the monthly payment we will divide total amount by 9.

`\text{The monthly payment}=(\$1161.16)/(9)`

`\text{The monthly payment}=\$129.01722\approx \$129.02`

Therefore, the amount of Devin's monthly payment is $129.02.