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Jane took out a personal loan am for $52,500 at an interest rate of 5.85% with monthly payments for a term of 10 years find Janes monthly payment

User Abacus
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1 Answer

15 votes
15 votes

Answer:

Jane's monthly payment on her personal loan for $52,500 at an interest rate of 5.85% for a term of 10 years is $611.49.

Explanation:

To calculate Jane's monthly payment, you can use the following formula:

Monthly Payment = Loan Amount * (Monthly Interest Rate / (1 - (1 + Monthly Interest Rate)^(-Number of Payments)))

In this case, the loan amount is $52,500, the interest rate is 5.85%, and the term is 10 years, or 120 months.

First, you'll need to convert the annual interest rate to a monthly interest rate. To do this, divide the annual interest rate by 12:

Monthly Interest Rate = 5.85% / 12 = 0.00487

Next, you can plug the values into the formula:

Monthly Payment = $52,500 * (0.00487 / (1 - (1 + 0.00487)^(-120)))

This simplifies to:

Monthly Payment = $52,500 * (0.00487 / (1 - (1.00487)^(-120)))

Calculating this further, you get:

Monthly Payment = $611.49

So, Jane's monthly payment on her personal loan for $52,500 at an interest rate of 5.85% for a term of 10 years is $611.49.

User Sumedh
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