Question

1. Sharon will borrow $3400 at 11% APR. She will pay it back over 18 months. What will her monthly payment be? (Use table)

A) $ 512.42
B) $ 220.06
C) $ 681.50
D) $ 561.00

2. Patrick will borrow $4300 at 11.5% APR. He will pay it bak over 5 years.

What will his monthly payment be? (Use the table) *note Second photo uploaded)

A) $94.56
B) $86.79
C) $123.21
D) $141.81

Answer 1

1. The answer is 220.06

2. Then the monthly payment for $4,300 would be: $4,300/100 x $2.199 =$94.56

Explanation:

Answer 2

1) The Monthly payment is 220.06.

2) The Monthly payment is 73.24.

Explanation:

1) Given : Sharon will borrow $3400 at 11% APR. She will pay it back over 18 months.

To find : What will her monthly payment be?

Solution : Amount is $3400 , APR = 11% , Time= 18 months

From the table 1 we can see at 11% APR and in 18 months the interest per $100 is 16.50 (Marked in attached table 1)

So, The total interest is

`I=16.50* 34 = 561`

The Monthly payment is
`M= (A+I)/(t)`

`M=(3400+ 561)/(18)=220.06`

Therefore,The Monthly payment is 220.06 Option B is correct.

2) Given : Patrick will borrow $4300 at 11.5% APR. He will pay it bak over 5 years.

To find : What will her monthly payment be?

Solution : Amount is $4300 , APR = 11.5% , Time= 5 years

From the table 2 we can see at 11.5% APR and in 5 years the interest per $100 is 2.199 (Marked in attached table 2)

So, The total interest is

`I=2.199* 43 =94.557`

The Monthly payment is
`M= (A+I)/(t)`

`M=(4300+94.557)/(5* 12)=73.24`

Therefore,The Monthly payment is 73.24.