Question

Use the monthly payment formula to find the monthly payment for a $1,000, one year

loan at an APR of 7.5%

Answer 1

Answer: 89,58 $

Explanation:

The formula :

`\displaystyle \rm S=A\cdot \left (1+(N)/(100) \right )^(\big r)`

where r is years ; N is the percentage by which we increase the price ; A is the original price

In our case :

`\rm r=1 \ \ ; \ \ A=100 \ \ ; \ \ N=7,5\% \\\\ S=1000\cdot \bigg( 1+(7,5)/(100) \bigg)^1=1000\cdot 1,075=\boxed{1075\$}`

Then the monthly salary is equal to:

`(1075)/(12) \approx 89,58 \$`