Final answer:
To calculate the monthly payment on a loan using simple interest, the principal amount, interest rate, and loan term are required. The simple interest formula I = Prt is used to find the interest, and the total amount repaid is P + I, which is then divided by the number of months to find the monthly payment.
Step-by-step explanation:
The student's question pertains to calculating the monthly payment on a loan using the simple interest formula. However, the loan amount, the interest rate, and the loan term are not provided in the question, making it impossible to calculate the monthly payment without this information. Usually, one would use the formula for simple interest (I = Prt) where I is the interest, P is the principal amount, r is the rate of interest per year, and t is the time in years. The total amount to be paid back would be the sum of the principal and the interest (A = P + I). To find the monthly payment, this total amount would then be divided by the number of months over which the loan is to be repaid.
For example, for a loan amount of $10,000 at a simple interest rate of 5% for 1 year, the interest would be calculated as follows:
$10000 × 0.05 × 1 = $500
The total amount to be repaid would be:
$10000 + $500 = $10500
If this loan is to be repaid over a year in monthly installments, the monthly payment would be:
$10500 / 12 = $875