Question

Jeffrey borrowed $12251 to start his own business. He agrees to

repay his debt over the next 3 years at an annual interest rate of
9%, compounded monthly. What amount must Jeffrey repay each month?
Ro

Answer 1

As per the question, Jeffrey borrowed $12251, and has to pay a 9% of interest. So, if you add the 9% to the original amount, i.e, $12251, it is 13353.59. And since he has to pay it in installments, it should be paid within 3 years, if possible by him. So if he pays it within 3 years time, then:

`13353.59 / 36 = 370.9`

So, the original amount that Jeffrey must repay every month is 370.9