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Noriko buys a Nintendo Switch for $350 and agrees to pay it off over 6 months, at an annual interest rate of 13%. Assuming simple interest, what will her monthly payments be?

User Cunnel
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1 Answer

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Answer: $62.15.

Step-by-step explanation:

Interest = Principal x Rate x Time

First, let's calculate the interest on the Nintendo Switch. The principal amount is $350, the annual interest rate is 13%, and the time is 6 months. We need to convert the annual interest rate to a monthly rate by dividing it by 12 (since there are 12 months in a year).

Monthly Interest Rate = Annual Interest Rate / 12

Monthly Interest Rate = 13% / 12

Monthly Interest Rate = 0.13 / 12

Monthly Interest Rate = 0.01083

Now we can calculate the interest:

Interest = Principal x Rate x Time

Interest = $350 x 0.01083 x 6

Interest = $22.89

The total amount Noriko will have to pay is the principal amount plus the interest:

Total Amount = Principal + Interest

Total Amount = $350 + $22.89

Total Amount = $372.89

To find the monthly payments, we divide the total amount by the number of months:

Monthly Payments = Total Amount / Number of Months

Monthly Payments = $372.89 / 6

Monthly Payments ≈ $62.15

Therefore, Noriko's monthly payments will be approximately $62.15.

User Honorable Chow
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