Question

I need to find how much does is his monthly payment.

Answer 1

The total amount Christian will pay is given by:

`A=P(1+rt)`

where P is the principal, r is the interes rate and t is the time. In this case we have that P=15000, r=0.07 and t=2. Then we have:

`\begin{gathered} A=15000(1+0.07(2)) \\ A=17100 \end{gathered}`

Hence he will pay $17,100 in total. Now, to find the monthly amount we divide the total by the number of months; in this case 24:

`(17100)/(24)=712.50`

Therefore he will pay $712.50 each month.