Question

What is the monthly payment for a loan if the amount to finance is $12,385, the APR is 6.9 percent for 5 years and the monthly payment per $100 is $2.44?

Answer 1

P*r*t
12385*6.9%*5
$4272.85

Answer 2

The monthly payment is $244.65.

Explanation:

The EMI formula is:

`(p*r*(1+r)^(n) )/((1+r)^(n)-1 )`

Here p = 12385

r =
`6.9/12/100=0.00575`

n =
`12*5=60`

Putting the values in formula we get,

`(12385*0.00575*(1+0.00575)^(60) )/((1+0.00575)^(60)-1 )`

=>
`(12385*0.00575*(1.00575)^(60) )/((1.00575)^(60)-1 )`

= $244.65

And if we see, this is $2.44 per $100.

`244.65/100=2.44`

So, the monthly payment is $244.65.