145k views
5 votes
You get a personal loan of $5,000 with 12% simple interest to be paid over 30 months. What is your monthly payment?

$150.00
$166.67
$216.67
$175.00

1 Answer

3 votes

You get a personal loan of $5,000 with 12% simple interest to be paid over 30 months. What is your monthly payment?
$150.00
$166.67
$216.67
$175.00


To calculate the monthly payment, we can use the following formula:

```
Monthly payment = (Principal amount + Interest) / Number of months
```

First, we need to calculate the interest. We can do this by multiplying the principal amount by the interest rate and the number of months:

```
Interest = Principal amount * Interest rate * Number of months
```

```
Interest = $5,000 * 0.12 * 30 / 12
```

```
Interest = $600
```

Now, we can calculate the monthly payment:

```
Monthly payment = ($5,000 + $600) / 30
```

```
Monthly payment = $166.67
```

Therefore, the answer to the question is **$166.67**.

The correct answer is **B) $166.67**.
User Unplugged
by
7.7k points