Let’s calculate the monthly payment for this loan. Given that you initially borrowed $130 and after 4 months, you owe $500, we can find the monthly payment.
Using a loan calculator, we can determine the monthly payment based on the loan amount, interest rate, and loan term. Unfortunately, I don’t have the exact interest rate or loan term provided in your question. However, I can still provide some insights:
Loan Amount: $130
Final Amount Owed: $500
Loan Term: 4 months (since you mentioned “after 4 months”)
Now, let’s calculate the monthly payment:
Subtract the initial loan amount from the final amount owed: [ \text{Total Interest} = \text{Final Amount Owed} - \text{Loan Amount} = 500 - 130 = 370 ]
Divide the total interest by the loan term (in months): [ \text{Monthly Payment} = \frac{\text{Total Interest}}{\text{Loan Term}} = \frac{370}{4} = 92.5 ]
Therefore, the estimated monthly payment is approximately $92.50.
Since none of the provided answer choices match this amount exactly, I recommend rounding it to the nearest whole number. In that case, the closest option would be C. 40. However, please note that the actual monthly payment is slightly higher.
If you have any further questions or need clarification, feel free to ask!