Question

Han received a 5-year loan at 3% per year monthly reducible interest. His total repayments were $140116. What was the amount of each monthly installment?

a) $2301.93
b) $2326.86
c) $2347.20
d) $2375.28

Answer 1

To find the monthly installment of Han's 5-year loan with a total repayment of $140,116, divide the total amount by the number of months: 60. The monthly payment is $2335.27, but none of the provided options match this result exactly.

Step-by-step explanation:

The question involves calculating the monthly installment of a loan with a known total repayment amount over a fixed period. To find the monthly payment, we typically apply the formula for an amortizing loan which takes into account the principal, the interest rate, and the number of payments.

However, since the total repayment amount is given as $140,116 over a 5-year period with a 3% per year monthly reducible interest, we can compute the monthly payment directly by dividing the total repayments by the total number of months. There are 5 years and 12 months in a year, so 5 * 12 = 60 months. Dividing the total amount paid by the number of months gives us the monthly payment:

Monthly Payment = Total Repayments / Number of Months

Monthly Payment = $140116 / 60

Monthly Payment = $2335.27

Note: The options provided in the question may not exactly match this result due to potential typo errors, as the closest option would be b) $2326.86.