225k views
1 vote
What are the monthly payments for a $100 loan at 12 percent for 36 months?

a. $944.21

b. $246.25

c. $332.00

d. $398.40

1 Answer

2 votes

Final answer:

The monthly payments for a $100 loan at 12 percent for 36 months is approximately $3.32.

Step-by-step explanation:

To calculate the monthly payments for a $100 loan at 12 percent for 36 months, we can use the formula for calculating the monthly payment of a loan:

Monthly payment = (Principal x Interest Rate x (1 + Interest Rate)^Number of Months) / ((1 + Interest Rate)^Number of Months - 1)

Plugging in the values, we get:

Monthly payment = (100 x 0.12 x (1 + 0.12)^36) / ((1 + 0.12)^36 - 1)

Simplifying the equation, we find that the monthly payment is approximately $3.32.

User Legato
by
7.9k points