The answer is: $ 211.90 / mo. .
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Step-by-step explanation:
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Use the formula:
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I = P * R * N ;
in which "I" = the amount of interest to be paid;
"P" = the principal, which is the amount of money borrowed;
"N" = the number of times that the interest.
Note: from the problem: "p.a." means "per annum", or "each year.
So, from the problem, "8.9% p.a. for 30 months."
Since 12 months = 1 year; 24 months = 2 years; 36 months = 3 years.
So 30 months = 24 months + 6 months; or 2 1/2 years; or, 2.5 years;
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So, from the problem: "8.9 % p.a. for 2.5 years" .
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This tells us that: "R" = 8.9% = 8.9 /100 = 0.089 ;
and that: "N" = 2.5 ;
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We are given: "P" = $5200" ;
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Plug this values in the formula, to solve for "I" :
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I = P * R * N ;
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I = 5200 * 0.089 * 2.5
= $1157
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So, we know that Carla is charged $1157 interest.
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Total repayment = amount borrowed + interest;
= 5200 + 1157 = $ 6357 ;
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Since the $6357 is to be paid in monthly installments, over the course of 30 months;
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How much will be repaid per month?
$ 6357 / (30 months) = $ 211.90 / mo.
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