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You get a personal loan of $5,000 with 12% simple interest to be paid over 30 months. What is your monthly payment?

User Mrkwjc
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1 Answer

1 vote

Answer: $216.67

Work Shown:

A = P*(1+r*t)

A = 5000*(1+0.12*30/12)

A = 6500

The amount $6500 is what you pay back

Divided over 30 months gives 6500/30 = 216.67 dollars per month.

Side note: The value t is in years, so 30 months = 30/12 years.

User Lance Hardwood
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