Final answer:
The monthly payment for a $7,500 loan with a 15% annual interest rate paid back over 12 months is $718.75. This is done by calculating the simple interest over one year, adding it to the principal, and then dividing the sum by 12 months.
Step-by-step explanation:
The student is asking for the monthly payment of a $7,500 loan with a 15% interest rate, to be paid back over a period of 12 months. To calculate the monthly payment, we can use the formula for an installment loan, which includes the principal and the interest. For simplicity, if we presume a simple interest that is not compounded monthly, we divide the total interest by the loan term and add it to the original principal divided by the loan term. Given a 15% annual interest rate, the interest for one year would be $7,500 x 15% = $1,125. When we add this to the principal amount and then divide it by 12 months, we get:
($7,500 + $1,125) / 12 = $8,625 / 12 = $718.75