Question

Melissa wants to check the accuracy of the finance charge on her loan. She has a $6,000, 4-year loan at an APR of 3.11%. What is her monthly payment? Round to the nearest cent.

Answer 1

To calculate the monthly payment for a loan, you can use the following formula:

Monthly payment = (APR/12) * loan amount / (1 - (1 + APR/12)^(-number of payments))

In this case, the loan amount is $6,000, the APR is 3.11%, and the loan is for 4 years, or 48 months. Plugging these values into the formula, we have:

Monthly payment = (0.0311/12) * $6,000 / (1 - (1 + 0.0311/12)^(-48))

Calculating, we find that the monthly payment is approximately $147.26. Rounded to the nearest cent, the monthly payment is $147.26.

Explanation:

Answer 2

Answer: $133.10.

Explanation: