Question

Brendon walsh wants to borrow $30,000 from the bank. the interest rate is 6% and the term is for 5 years. what is the monthly payment amount? $360 $530 $1,800 $6,360

Answer 1

it should be 360
.......

Answer 2

Problem
What is the monthly payment amount? $360 $530 $1,800 $6,360

Given facts
The amount to be borrowed $30,000
Interest rate is 6%
the term of payment is 5 years

Mathematical operation
Division, addition and multiplication

Solution and Answer

1.Get the interest
convert interest rate to decimal 6%=0.06
$30,000 x 0.06= $1800

2. Add the borrowed amount and interest to get the total amount to be paid by Brendon.
$30,000 + $1800= $38,000

3. The payment would be done on a monthly basis for 5 years.
5 years = 60 months

4. Divide the total borrowed payment to the number of months. To get the amount of the monthly payment.
$38,000/60

5. The monthly payment.
Answer $530